Britain forced to risk £13 billion for sake of EUs failed monetary and economic union
http://www.telegraph.co.uk/news/worl...-caves-in.html
http://www.dailymail.co.uk/news/arti...save-Euro.html
http://www.ukip.org/content/latest-n...k-in-debt-trap
Alistair Darling has caved in to a demand that British taxpayers underwrite at least £13 billion of debt held by other European governments as EU finance ministers agreed an even bigger bail-out for the euro.
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The Chancellor, representing Britain until a new government is formed, was forced to participate in a £95billion "stabilisation mechanism" aimed helping European Union countries that face a debt crisis.
The decision followed a crisis meeting in Brussels to discuss the financial turmoil that has raised doubts about the future of the euro. It exposes the British taxpayer to £9.6 - £13 billion in liabilities should Spain or Portugal go the way of Greece.Mr Darling had no choice but to surrender because the decision was taken under a Lisbon Treaty "exceptional occurrences" clause that stripped Britain of its veto. "I think it’s important that we do everything we can to stabilise the markets to show we’re coming through what is a difficult period," he said. Britain last night succeeded in staying out of an even larger fund solely for the 13 countries using the euro.
The EU agreed a £624 billion rescue package of bilateral “special purpose vehicle” loans for the 16 euro zone states struggling to finance their debts. As well as the loans, an extra £52 billion (€60bn) of new cash for a “stabilisation mechanism” will be raised by allowing the European Commission to use the EU budget as collateral on international debt markets. Britain escaped being sucked into the wider bailout loans but was forced to underwrite the “stabilisation mechanism” which, added to an existing “facility” of £43 billion, makes British taxpayers liable for £13 billion of a new £95 billion (€110bn) fund. Already indebted euro zone states will be on standby with £382 billion (€440bn) of loans, which will be topped up by an IMF contribution of £191 (€220bn).
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Less than six months after the Lisbon Treaty took effect, the UK may be forced to pay towards other EU countries' huge deficits, because of a little known clause it contains.
Britain's next Chancellor of the Exchequer will not be able to opt-out of underwriting £13 billion of EU debts, because the EU's decision to help indebted Europeans was taken under the treaty's ‘exceptional occurrences'' clause, that has stripped Britain of its previous power of veto.
UKIP Chairman Paul Nuttall said: "Why is it at the time the UK needs to spend every penny it can on reducing it's own deficit, we are instead going to spend £13billion on bailing out other countries? I'll tell you why, it's because we signed up to the Lisbon Treaty.
"UKIP warned about the dangers of the Lisbon Treaty before Brown condemned the country to it.
"The Tories and the Lib Dems are apparently talking about ways to deal with the UK's deficit, surely getting out of the EU should be on the agenda, especially since we are now going to have to pay £13 billion of other countries' debt before we pay off a single pound of our own.
"Cameron missed out on 21 seats because people voted UKIP, enough to give him the majority he desperately wanted, if he doesn't take a much stronger line on the EU and make good his broken promise of a referendum the same will happen next election."
So despite the fact that we are under incredible amounts of debt ourselves, we are going to have to raise taxes and cut public spending by a massive percentage;- we are still giving money to the European Union to fund its broken and unworkable economic and monetary schemes which have been part of the cause of the disaster of Europe that threatens both Italy, Ireland, Portugal and Spain. The incredible thing is though, thanks to the Lisbon Treaty (which we were never asked about) we cannot deny the EU these funds and have basically and almost lost contol of our own treasury - we need to wake up.
Thoughts?
