The terrible toll of the treachery of our politicians.
Titled The UK’s risks and exposure to the European Investment Bank and other European financial mechanisms, Bob Lyddon’s report for the Bruges Group reveals the true extent of the UK’s obligations in respect of the present and future debts of EU institutions including:
- How the Government’s defined position is questionable in law and therefore has led it to underestimate its full potential exposure to EU debt
- That the true extent of the UK’s potential exposure to the EIB, ECB and EFSM (European Financial Stability Mechanism) the debt is €149.2 billion because:
- The ECB is entitled to call upon the Bank of England for up to €50 billion of the UK’s currency reserves. Under Council Regulation 1010/2000 of 8th May 2000, the ECB has the legal right to call on individual member countries’ national reserves (€50 bn in the case of the UK) should the viability of the ECB be at risk.
- The EIB can call upon up to €35.7 billion from the UK, should it lose money on the loans that it has made to Govts and banks in vulnerable economies such as Greece, Portugal, Spain, Italy and Ireland.
- The UK currently has a €60 billion liability to the European Financial Stabilisation Mechanism (EFSM). This figure could increase if one or more member countries defaults, because the remaining solvent members are required jointly to take on the insolvent member’s debt.
- The UK’s €1.9 billion of paid-in capital to the EIB and a further €1.6 billion to the European Central Bank (lodged to pay the UK’s share of its costs) is also at risk.
This is merely the financial cost and disregards the social costs and absolute betrayal of all that of which our country once held dear and honoured. That treachery may be noted today in France and demonstrated by the fact that their new President, immediately following his being sworn into office, will travel to Berlin to receive his orders from the German Chancellor.
All this while the former independent democratic smaller natiuons right across Europe struggle for their very financial and independent survival, their economies destroyed by the lies and illusions made necessary for the EU to have gained such powers on behalf of its one controlling nation - Germany.