EU To Ask Britain For £50 Billion To Save Euro


This is the most incredible news I have yet heard about the Lisbon Treaty. Article 122 – did you read this one Mr Brown? – states that where a member state is in severe difficulties, the Council Of Ministers may grant Union financial assistance, and no country can veto the decision if they do. Greece is about to crash out of the Euro, unable or unwilling to fix its deficit. A Union bail-out is being planned as the only way to stop the Euro from disintegrating.

According to Open Europe, Britain will be required to contribute. Even though we are not in the eurozone we signed all the terms of the Lisbon Treaty. Open Europe today says that Britain’s share of the Greek bail-out will be £7 billion, or higher if other bankrupt eurozone countries like Spain are excused their share, maybe £8 or £9 billion.

Can you believe it? We in the UK are already borrowing to the tune of (minimum) £178 billion this year, of which £10 billion is going down the throats of EU bureaucracy, and now this.

Did anyone have any idea that dear Old Gordon was signing us up to bailing out the EU’s bankrupt states such as Spain, Portugal, Italy, Greece and Ireland when he dashed off to sign up to Lisbon first thing he was appointed, when he refused to be photographed signing the wretched thing?

If Greece, which is only 3% of EU GDP is bailed out, so will the others ensure that their taxpayers are not required to endure a harsh regime, and plead for similar treatment. The other PIGS, Portugal, Italy, (Greece) and Spain are heading the same way as Greece. The total of these countries makes up 20% of EU GDP. If the bail-out is pro rata Britain’s share will be no less than £50 billion.

Britain’s own finances are in just as sorry a state as the PIGS, courtesy of dear old Gordon with our deficit possibly as high as 25% of GDP. The banks still have potential toxic assets in the trillions and yet we are being asked to stand the hit for these basket case economies who have never acted as responsible eurozone members, as well.

It’s very simple. We can’t. If the Euro needs to split off the degenerate economies, no problem, but as far as Britain is concerned, the EU can get its greedy hands out of our pockets. We are not going to take part in sheer lunacy and bankrupt ourselves because others feel that’s the easiest way for the Euro bureaucrats to save their faces.

As Gordon launches his ASPIRE election campaign, could he give us some idea how and why we should pick up the tab for the fiasco that the Euro is becoming. We opted out. It is not our responsibility.

And as for the Lisbon Treaty, maybe David Cameron is wrong to say it’s finished business. We were not told about these terms whereby we would have to bail out the financially rotten half of Europe. This could cost us £50 billion.

We are living in la la land. Someone has start telling it like it is. The answer to the EU is simply N followed by O. And then O followed K.

FULL REPORT from Open Europe –

UK could face £7bn bill if the EU bails out Greece;
Anatole Kaletsky: The eurozone will be tested to “near-destruction”

The Mail on Sunday reported that if an EU rescue fund for the troubled Greek economy matched the country’s budget deficit, the UK would be asked for £7billion, assuming contributions matched each country’s share of the total EU economy. The article noted that, until now, discussion has focused on whether fellow eurozone members could be asked to bail out Greece.

But under Article 122 of the EU Treaty, all EU members could be liable. The Treaty article says: “Where a member state is in difficulties or is seriously threatened with severe difficulties caused by natural disasters or exceptional occurrences beyond its control, the council of ministers, on a proposal from the European Commission, may grant, under certain conditions, Union financial assistance.”

The paper reported that the EU Council decision would be made on a majority vote with Britain having no veto. If other troubled eurozone members such as Ireland or Spain were excused from making a contribution, Britain’s share could be even larger. A Treasury source would not comment on whether any official calculations have been made regarding Britain’s potential exposure.

In the WSJ, Erwin Stelzer writes “we are about to learn whether the euro can survive a two-speed euro zone. If France and Germany do recover at a rate that requires the ECB to tighten so as to avoid inflation, the laggards would be hard hit – higher interest rates don’t make life easier in recession-bound economies.”

He adds, “Germany, France and other countries have too big a stake in the long-run viability of their new currency to see Greece do what its politicians might feel they have to do to preserve their alliance with the public-sector trade unions – drop the euro, and re-establish their national currency, sufficiently devalued to stimulate exports and economic growth.

It is unlikely to come to that – there is so much political capital invested in the euro by the political class that even the stern and parsimonious [German Chancellor] Angela Merkel will in the end contribute to a bailout fund if necessary.”

In the Times, Anatole Kaletsky argues that “before this crisis is completely finished, the cohesion of the eurozone will be tested to near-destruction.”

According to Fraser Nelson, the Labour Party don’t really care about any of the details. They are all thinking beyond the election, what jobs they can land, who can become Leader of The Opposition. They just don’t care about the finances. In fact the worse they are the more delighted they will be to see Cameron and Osborne struggling to repair the damage.

The Tap Blog is a collective of like-minded researchers and writers who’ve joined forces to distribute information and voice opinions avoided by the world’s media.
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19 Responses to “EU To Ask Britain For £50 Billion To Save Euro”

  1. Twig says:

    If Dave Cameron promised a referendum on the EU the Tories would clean up, instead of struggling to hold on to a ten point lead against the worst government since the last Labour government.

    It just proves that Cameron is a dyed in the wool EU man.

  2. tapestry says:

    It’s not proof. Cameron might find allies inside the EU who support his ideas, and can achieve a withdrawal or repatriation of powers without confrontation.

    Better to make moves once in power than stir up enemies this side of the election.

    Europhiles are as frustrated with him as sceptics. We’ll see what he does when in power.

  3. Twig says:

    @Tapestry

    Would this repatriation of powers be before or after we have to cough up billions of pounds to save a currency that we don’t use?

    Do you not agree that the promise of a referendum would bring him more support and remove the possibility of a hung parliament ?
    Surely if he were EU sceptic that would be preferable to struggling along with a ten point lead and having to kiss up to the EUphile LibDems.

    I don’t buy the idea that he’s keeping his powder dry until after the election – let’s not forget the Tories have form on the EU and the Euro.

  4. tapestry says:

    I would agree except for one problem. Power rests with The media. We are a mediocracy. It is necessary to appear to voters through the prism of the media.

    Then there is the Tory europhile wing, which is tiny which will be guaranteed media time to attack Cameron, if offended.

    Better to go as we are. But otherwise I would agree. It would be nice to be more explicit. Blair surprised us by not being what we expected (By most). It is a sad fact that we have to wait until they are elected before we find out what we’ve put in place.

  5. Twig says:

    Scary.

    Did you notice the softening of voter support after he dumped the referendum?

    If he does get a workable majority, do you think he he will continue pushing the AGW agenda (as I don’t think it does him any favours)?

  6. tapestry says:

    I have a different take on that. The europhiles launched the Hung Parliament narrative once Cameron declared future resistance to Lisbon.

    There was a coordinated attempt to control the polls. The low point was 6% by Ipsos MORI, which was quite ludicrous in its details. The media decided to cool off on Cameron and try to persuade the electorate to ease back too.

    The small rise in UKIP in polls was not significant, but Tory morale was hit by the various events and eurosceptics associated the apparent fall in support with this minor trend.

    IMO they were mistaken. It was simply an attempt to manipulate polls and opinion by the MSM on the back of instructions to pin back Cameron.

    Then came Copenhagen, and the blowing up of AGW, which will take another year or so to be finally buried as a theory.

    And then the Brown collapse as Labour start to spontaneously combust.

    Labour are trying one more push now but it’s probably popcorn time.

    Re enviroment, the Tories are differentiating blue green from red green. Red green wants a centralised taxing response to climate. Blue green wants a better cleaner environment based on voluntary actions by citizens.

    It’s all just starting about now, but will grow as a trend. Cameron cannot fight climate, Lisbon, economy, Labour, BBC all at once. He has to take a few steps in the right direction each day, and only engage in battles once all his ducks are in a row.

  7. Richard says:

    OMG, I am so angry at this I can’t even express what I want to say without it degenerating into swear words and angry grunts, lol

  8. “Did anyone have any idea that dear Old Gordon was signing us up to bailing out the EU’s bankrupt states”

    Yes. Some of us actually read it and demanded that their MPs vote against the Lisbon treaty. Fat lot of good that did.

  9. Frances says:

    This does not surprise me one little bit. The Conservatives took Britain into the EU and New Labour have added to this treachery.

  10. James says:

    wow that is just unbelievable, we can barely afford to equip our armed forces yet the EU expect us to bail out bankrupt countries with bilions of pounds, another reason to vote UKIP if i ever did see one!

  11. Paul says:

    Its alright, the LibLabCon are certain that you can simply borrow your way out of debt – at least while you are in power.

  12. Phil Simpson says:

    Well what does one expect if the governement dished out £150 billion towards climate change and is going around saying that the government is successfully spending its way out of recession?

  13. Mel Creighton says:

    More appeasement to EU by Brown at the cost of every family in the UK

  14. tapestry says:

    Good evening. This looks like a visit from UKIP!

    Maybe try Cameron first? In this election a UKIP vote helps Labour. There are people like Carswell who might end up in control of the party as well.

    Don’t discount all possibilities. UKIP will not bring any answers that I can see, only prolong the agony.

  15. A Big Englander says:

    NICK CLEGG HAS REPEATEDLY CLAIMED THAT HIS PARTY WANTS A REFERENDUM ON THE CONTINUED MEMBERSHIP OF THE EU. IT’S HIS PARTIES PRIORITY.. WHATCH OUT DAVID..IF THE LIBS PUT THIS INTO THERE MANIFESTO AT THE LAST MINUTE..YOU WILL NOT HAVE ANY MAJORITY..POSSIBLY LABOUR AND THE CONSERVATIVES JUST BLOWN AWAY…..SO DAVE MY SON …WAKE UP AND DO WHAT THE MAJORITY IN THIS COUNTRY WANT..PROMISE A REFERENDUM..STAY IN OR GET OUT…The result will give all of us our hard won F R E E D O M back.

  16. tapestry says:

    The Lib Dems have dropped that Policy, regretfully, Big Englander. The change was announced by the previous leader.

    It was just a ruse to cover their tracks for crawling out of the Lisbon referendum promise. They voted down the referendum on Lisbon which was the key.

    They are hardly to be trusted, regretfully.

  17. James says:

    Your application of Article 122 is incorrect. You claim that any country in financial distress will be awarded aid. This is not true for that applies only when the country in distress had no control of the matter causing it, Greece certainly had control of their debt!

    Article 122
    (ex Article 100 TEC)
    1. Without prejudice to any other procedures provided for in the Treaties, the Council, on a
    proposal from the Commission, may decide, in a spirit of solidarity between Member States, upon the
    measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of
    certain products, notably in the area of energy.
    2. Where a Member State is in difficulties or is seriously threatened with severe difficulties caused
    by natural disasters or exceptional occurrences beyond its control, the Council, on a proposal from the
    Commission, may grant, under certain conditions, Union financial assistance to the Member State
    concerned. The President of the Council shall inform the European Parliament of the decision taken.

    Incredible that citizens like you can vote, even if its for a party I am in.

  18. tapestry says:

    James, EU law is teleological. Interpretation of texts is not literal as in British or American systems.

    Can Greece control the acts of the ECB, for example, which sets inflation fighting above growth?

    It could be interpreted to suit.

    In the text of the original constitution, this article was enforceable by QMV. Lisbon reduced this to “in a spirit of solidarity”. The only question is how much feeling of solidarity is there?

  19. “Where a Member State .. is seriously threatened with severe difficulties caused by .. exceptional occurrences beyond its control, the Council, .. may grant.. Union financial assistance to the Member State.

    Seems very clear to me. We can have our pockets picked at will by the Council or Commission.

    We keep hearing how the current crisis was brought about by exceptional occurrences beyond [our] control. If you disagree with that it makes no difference if the politicians to decide otherwise.

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