Posts tagged ‘Government spending’

June 6, 2011

European Union’s own public expenditure goes up by a staggering 5% in 2012 whilst it orders member states to put theirs in reverse

[Tammy Jones, UK Financial News Contributor]

In a gesture, breathtaking by its sheer slime-oozing texture, MailOnline reports that UK Tax Minister, George Osborne, joined the ranks of the EU slithering elite which are bringing the economy of Britain to a shuddering halt, by pronouncing that the government’s austerity measures imposed by the IMF and the EU in return for the country’s bailout loans are: ‘essential’ for Britain’s recovery.

The Tax Minister’s pronouncement spawns from the emptiness of the IMF and EU’s failure to produce any model for austerity measures (which essentially entail a dramatic cessation in public spending) ever bringing back any country in Europe from ruin to prosperity, coupled with the PIGS countries clear inability to not only sustain any kind of prolonged public expenditure cuts, but now clearly to pay back their bailouts.

And in a dramatic failure to lead from the front on public expenditure cuts, whilst the EU Commissioners are so busy championing ‘austerity measures’ to member states, they are in shopping mode with member states’ taxpayer’s contributions as the EU’s own public spending/ administration costs are set to go up by 5% in 2012.

As such, the clear-cut strategy for the EU Commissioners seems to be:-

a) transfer public spending from member states to the EU (which has never been audited)
b) EU Commissioners will then control and eventually dominate all member states
c) member states, via economic and political union, become ‘prefectures’/ ‘regions’ of the European Union.

April 23, 2011

European Union’s EUR500m foreign public spending grants

[Anne Marwick, EU Finance & Economy Contributor]

Whilst the ‘bailout’ funds injected by the EU into their failing member states’ economies during the financial crisis will need to be paid back by them and in the meantime, their public spending programs remain severely restricted by the EU, the EU has  committed more than EUR 500m in free grants to foreign states to boost the foreign countries’ public spending programs.

As a result, the PIGS (Portugal, Ireland, Greece, Spain) countries and others in the European Union like Latvia, Bulgaria and the United Kingdom, struggling to keep their citizens from dire straits during the financial crisis as a result of the EU’s clampdown on their public spending, are becoming increasingly angry over the EU’s public spending double standards.

New Europe reports that the European Commission is to spend more than €500 million in non-repayable grants  under its Vulnerability FLEX mechanism which is a program for helping African, Caribbean and Pacific (ACP) countries  deal with the effects of the global financial crisis. The funds are targeted as assisting the countries to maintain their public spending programs.  Andris Piebalgs, EU Commissioner for Development said: “Developing countries continue to face important difficulties, including funding gaps in their government’s budgets, as a direct consequence of the global financial crisis. This year, this EU mechanism will help 19 ACP countries maintain their level of public spending in priority areas, and therefore mitigate the social impact of the economic downturn”.

The countries that have benefited from the program so far include:  Benin, Burundi, the Central African Republic, the Comoros, Dominica, Ghana, Grenada, Guinea Bissau, Haiti, Malawi, Mauritius, the Seychelles, Sierra Leone, Solomon Island, and Zambia.

In addition, Dominica Central Newspaper reported last week that the Caribbean Export Development Agency (Caribbean Export) received over €32 million from the European Union to assist governments in developing the private sector in CARIFORUM countries.

Analysts are asking that if the EU, by its foreign grants program policy, like the IMF, recognises that a country’s public spending is vital to its economic recovery, it is not logical, nor financially viable for the member states in the long run  for it to require  them to enforce austerity measures in their public spending programs.