Britain's illegal contributions to illegal EFSM

Britain's Commitments under the EFSM, accrue on a basis that is supposedly explained in this linked pdf document.

Note from Page 5, the far-reaching depths of the obligations incurred by Alistair Darling, when there was actually no legal Government in place in Britain.

There are many important features that have enabled the confirmation of the EU's AAA rating. First, the EU is unconditionally committed to honouring its legal obligations towards its lenders. Second, the European Commission has the right to draw on Member States' resources to ensure that sufficient budget revenues are available at all times to cover all obligatory expenditures, including debt servicing. And lastly, Member States are legally obliged to balance the EU’s budget, including debt-servicing.(Blog editor's emphasis added in red).

Note from Page 8, that the peak periods for the payback of State Guaranteed Debt are at their most severe from the end of this summer. See also the Charts on that page, which illustrate the comparatively comfortable position of the UK as compared to the Eurozone. A benefit to Britain that the EFSM clearly seeks to eliminate!

Commission calculations show that peak amounts of state-guaranteed bank debt are expected to mature in the fourth quarter of 2011 through the second quarter of 2012. Comparing charts 5 and 6 illustrates the close correlation between the maturity profiles of both general and guaranteed bank debt and highlights the periods that will be most challenging in the coming months and years.

The footnotes numbered 10 and 11 from Page 9 are also worth highlighting here.

10 Approximately 86% of the nearly EUR 600 billion in government guaranteed bank debt that was issued between October 2008 and December 2009 was rated AAA, comprising a significant portion of the totals that will come due through 2012.
11 This would mean that when refinancing or in the event of a new issuance, such debt instruments would carry the rating of the banks themselves and no longer the rating of the sovereign guarantors.

According to the BBC's Stuttering Peston we contribute 4.5% to the IMF portion of these bailouts (in an increasingly likely default situation) but 13.5% to the EFSM, linked here. Bill Cash MP reckons the figures are 4.8% and 10.2% respectively, read here. These are whopping sums, even before the EU Commissions' proposal of an increase made this morning, upon which I blogged earlier, (see immediately below).

Given that the whole foundation for the EFSM, read here is illegal anyway, as all countries joined the Euro Currency voluntarily and in the face of currency unions throughout history failing without the pooling of economic governance, AND against the combined warnings of many renowned economists at the time, how can this action therefore now be considered as caused by exceptional circumstances beyond their control:

Whereas:(1) Article 122(2) of the Treaty foresees the possibility of granting Union financial assistance to a Member State in difficulties or seriously threatened with severe difficulties caused by exceptional occurrences beyond its control.

Furthermore, in Britain's case, no Government existed which could grant approval of such arrangements, even were they ever to be declared as legal as the decision was taken by a non-minister (Alistair Darling) reporting to a non-Prime Minister (Gordon Brown). Yet the present Coalition Government to this day claim that it was their predecessors who took this disastrous decision.

This blog's postings for the month of May 2010, when these events took place, are well worth reading in full, linked here. If time does not allow for such a lengthy and teeth grinding exercise, please at least read this repeated below as posted early on Sunday morning 9th May, 2010, when there remained time for Britain in the form of David Cameron and Nick Clegg, as mentioned within the text, to prevent the expenditure of billions and billions of pounds of wasted taxpayer money to attempt save the clearly doomed Euro Currency

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Former Marxist Darling given last chance to fully wreck Britain's economy!

The following is contained in an Agreement reached by the EU eurozone Heads of State in an INFORMAL meeting of the Eurogroup (ie Euro currency zone members only) - Third, taking into account the exceptional circumstances, the Commission will propose a European stabilization mechanism to preserve financial stability in Europe. It will be submitted for decision to an extraordinary ECOFIN meeting that the Spanish presidency will convene this Sunday May 9th. Alistair Darling belongs to a defeated party and should have no authority to attend an ECOFIN meeting charged with reaching a pan-EU agreement as commanded by members of the euro currency group. David Cameron and Nick Clegg should clarify Darling's status immediately and if possible prevent his departure from the country!  

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