Wednesday, May 23, 2012

Dutch Caretaker Government prepare to cede €40 Billion spending authority to the ESM

The artcile summarising the state of play in the soon to be bankrupted country of Holland was described this morning on this link, which concluded as follows:

In the present ESM, the EFSF, a unanimous vote by all participating countries was required. For the ESM, this obtains regarding decisions that must be taken quickly, the backing of 85 percent of the participating countries is sufficient, to avoid small countries being able to cause decision-making to stagnate.
The Netherlands (with a share of just 5.7 percent) will not be able to block any ESM measures on its own. Earlier, the Council of State and government auditors were also extremely critical of the permanent emergency fund, particularly the limited opportunities for checking up.

The measures mentioned can cover spending of €4.5 billion in the case of Holland, plus another €35 billion in guarantees. Think how much cash-strapped France is giving away for the ESM which will be as doomed over Spain, Italy,  et al just as the EFSF and EFSM have proved over Greece!!

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