Tuesday, October 02, 2012

Surely Spanish Taxpayers €13 Billion to Italy's Enel = Massive Corruption

Bloomberg carried the report of an extra €25 Billion Spanish budget hole yesterday, linked here, caused supposedly and quite incredibly by years of billing customers far less than reported revenues.

More astounding still is the fact that more than half the money seems to have been underwritten by the Spanish taxpayers for the benefit of the Italian State Electricity conglomerate Enel, a quote:

Budget Ministry spokesman Jesus Garcia declined to give further details of how Spain is accounting for the rescue or how much it contributed to the jump in borrowing.
The government already backed about 13 billion euros of the debt through a securitization program that began last year. The program took the debt off the balance sheets of utilities including Iberdrola and Enel SpA (ENEL)’s Endesa SA unit by selling it to investors with a government guarantee. It didn’t affect the overall indebtedness of the system.

The scam may have begun as part of the enormous confidence trick of climate change and the resulting green energy obsession, which not being produced when the wind don't blow was nevertheless billed anyway to hide that failure, pure supposition on my part,of course but if true, likely to prove a problem elsewhere in the EU, where the massive windmill white elephants now dot the formerly unspoilt countryside.

The one comment so far to the Bloomberg report is worth reading, this section particularly striking a chord within my head, on the continuing extraordinary depths of the corruption which those in the EU have so far successfully accomplished with none yet punished:

But when short/intermediate Spanish/Italian bonds demand 8% and unemployment in France reaches 15-20% (Spanish unemployment is already 25% and for youths it's 40%+), maybe Europeans will come to grips with reality and break the public union stranglehold. Until then........the so called press sleeps with the fishes and it's fantasyland. Nearly a decade of sleeping press and inept Spanish socialist policies to "help" the non rich have damm near bankrupted that country and sentenced its citizens to decades of somehow making ends meet and sadly accepting the migration of their children. Yet the French just elected .....a socialist! Meanwhile, the budget for layer upon layer of Brussels bureauracy (on top of layer upon layer of Madrid/Paris/Athens/Rome/Lisbon bureauracy) now tops E1.5B annually! Honestly, how did Europe get on so long without Brussels to manage things so well? Indeed, one could sensibly argue that after a mere decade, there's a clear inverse relationship between the amounts EU poiliticians pay themselves/spend and the fortunes of the people they represent so miserably. The magnitude of the waste, corruption and sheer incompetence staggers even the likes of a Hawking or Asimov.


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