Posted on 05/18/2020 11:25:59 PM PDT by Berlin_Freeper
Angela Merkel and Emmanuel Macron have proposed that the EU borrows on the financial markets in order to disperse some €500bn (£448bn) through grants to European economies hit hardest by the coronavirus pandemic.
Under the Franco-German proposal the member states receiving the funds would not need to repay the cash. Liability for the debt would instead be added to the EU budget, to which member states contributions vary according to the size and prosperity of their economies.
Should the proposal receive the endorsement of the 25 other member states, it would amount to a significant move towards a level of burden-sharing and fiscal transfers firmly opposed during past crises. The European commission, the EU’s executive arm, would borrow the money under the EU’s name.
(Excerpt) Read more at theguardian.com ...
They make it sound like it’s free ‘gift’ money. But after they borrow the 500-billion from the banks....there’s interest involved, and it’ll take more than a decade to pay this back. Figure with the interest involved....it’s a trillion-plus Euro.
Probably a lot of art and cultural projects will suck up a quarter of this funding.
In the end this means Germany, who funds most of the EU budget, will pay for this.
If some German entrepreneur would just stand up and explain this in a two-minute piece, how the working-class German guy is exploited by the gimmick...the whole discussion would fall apart for the pro-EU crowd.
They can’t even explain in a public setting...how they would spend the 500-billion Euro or why it has to be this much. For all that people know...it’s for unicorn ranches in France, or Leprechaun retirement homes in Ireland, or the construction of more Mermaid statues in Denmark.
So, mostly for the PIGS, Portugal, Italy, Greece and Spain? Sure Germany will pay out the most, but for other members, the price is still high. With the current global economy, I suspect many would just as well let the EU die as mortgage their future for the bankrupt PIGS.
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