Wednesday, 16 June 2010

Indeed, it is Europe who needs the U.K., it is not the U.K. who needs the E.U. !

Governments throughout Europe are raising taxes, cutting public sector pay and public services - sucking out vast sums of purchasing power from the European economy. The banks are still in disarray. Lending to business continues to decline? The money supply is contracting? The murmurs about the Euro's long-term prospects are rapidly becoming shouts.
Spanish politicians unveiled a raft of reforms to the labour market yesterday but their attempt to shore up financial market confidence failed to quash rumours that the country was headed for Greek-style bailout.
Spain has had its snout in the Euro trough for 26 years now, my taxes have paid for their new railways, my taxes have paid for their new motorways and my taxes have subsidised their farmers.
If they turn to an extremist political party just because British or German taxpayers have other priorities now then they are not a nation that I want as a partner.
Isn't it about time that Spain and Portugal helped themselves rather than relying on others? In a spirit of European solidarity, of course. After all, they were so helpful to new new Eastern countries when they joined as I recall Spain in particular required significant amounts to be paid to them via Brussels, amounts that the likes of Poland or Hungary can only dream of.
This is a particular failing for the Euro, because the Euro has one Central Bank and one interest rate, but it does not have the kinds of automatic fiscal adjustment that the UK or US have for their component parts. So different Euro area countries can experience different levels of distress from some economic event, but one will not help another.


  1. Not only that Oliver, many Brits bought properties here and there are still thousands of pensioners living here, all adding to the economy.

  2. Sue, I used to live in Barcelona in the early 80s and I witnessed the start of the EU and the progress under there rule.As I wrote Spain must help themselves from now on but with Zapattero and his socialist government I'm not quite sure how!