George West predicts the day of reckoning for the euro is coming.The euro was intended to be a currency to bring stability to European countries. Today we see only too plainly that the opposite is the effect as riots, austerity measures and job losses become every day occurrences with worse to come. Will eurozone bail-outs work? Twenty one years after reunification, intra-German transfers don’t seem to be working in Germany Quoting from a German Test-Bed source,the Solidaritatzuschlag tax was instituted in 1990 to finance transfers from West Germany to former East Germany. So far it has raised £180 billion. Have these transfers worked? According to a professor of finance in Dresden “By 2019 former East Germany won’t even reach the standard of living of one of the least prosperous landers (regions) of West Germany. Nowhere in the world can transfer subsidies from prosperous to less prosperous regions make structurally weak regions successful”. Germany has a single language, a single work ethic, a single nation wide currency, a single history, highly regarded education systems etc but intra-German subsidies appear not to be working. Neither have regional subsidies worked in Italy.
The chances of East Germany trading its way out of relative poverty, two decades after abandoning its own currency are slim. So are those of Greece and others for so long as they remain trapped in the euro
What is the lesson for the UK where we are having to help bail out other countries despite the UK having stayed out of the euro? Our financial problems are compounded by being a member of the EU which costs us dearly year after year, where less than half the money we send to Brussels comes back for regional funding of projects and where down the bottom of the financial “money for the boys” ladder, the Leicester Mercury announces the closure of local quango Prospect, entirely funded by us taxpayers at more than a million pounds each year to run, a Chief Executive said to be on a salary of £120,000 and chairman earning £40,000 part time. What is the subsidy therefore per job created by Prospect in its lifetime I wonder?
The day of reckoning is approaching for the euro and for its offspring regional funding extravagances in this country. Print as much money as you like, a fundamental problem remains in that from its outset a single euro currency has led us predictably into a mess of social unrest, strikes, job losses and worse. It was from the outset a political tool for EU “Ever closer union” whether we wanted it or not. It is good money chasing bad all over Europe and time for the merry –go -round to stop to return to the valid reasons why each country originally exerted its own border control through having its own currency.
George West is an active member and President of the Campaign for an Independent Britain.
The chances of East Germany trading its way out of relative poverty, two decades after abandoning its own currency are slim. So are those of Greece and others for so long as they remain trapped in the euro
What is the lesson for the UK where we are having to help bail out other countries despite the UK having stayed out of the euro? Our financial problems are compounded by being a member of the EU which costs us dearly year after year, where less than half the money we send to Brussels comes back for regional funding of projects and where down the bottom of the financial “money for the boys” ladder, the Leicester Mercury announces the closure of local quango Prospect, entirely funded by us taxpayers at more than a million pounds each year to run, a Chief Executive said to be on a salary of £120,000 and chairman earning £40,000 part time. What is the subsidy therefore per job created by Prospect in its lifetime I wonder?
The day of reckoning is approaching for the euro and for its offspring regional funding extravagances in this country. Print as much money as you like, a fundamental problem remains in that from its outset a single euro currency has led us predictably into a mess of social unrest, strikes, job losses and worse. It was from the outset a political tool for EU “Ever closer union” whether we wanted it or not. It is good money chasing bad all over Europe and time for the merry –go -round to stop to return to the valid reasons why each country originally exerted its own border control through having its own currency.
George West is an active member and President of the Campaign for an Independent Britain.
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