If a huge slump and long recession, more taxpayer funded bank bailouts, thousands of businesses bankrupted and thousands of homes repossessed and MUCH higher unemployment was not enough, it appears that the UK is facing a maximum combined potential loss of €149.2 billion on its current capital and financial commitments to the EU, the European Investment Bank and the European Central Bank.
The figures for the UK’s total European liability, are contained and published in a new report by the Bruges Group. Herewith the download: Bruges Group Report – Lyddon
Entitled, “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 Stabilisation 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 billon 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 governments and organisations 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). Solvent members are required to jointly 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.
British Gazette comment: Dear Reader, please accept our most profuse apologies for sounding like a broken gramophone record as we say again and for the umpteenth time; If you hand the government of your country over to a foreign power, what do you expect?