Thursday, 21 April 2011

And still the EU wants more of our money

The latest demand for an EU budget increase of 4.9% from Polish EU commissioner for the budget, Janusz Lewandowski, has brought the predictable squeals of disapproval from Dave. Its just like last time when Dave came home boasting he had succeeded in getting the EU budget frozen. What happened? It increased by 2.9%, just what the EU had asked for. One final point, which country currently benefits from EU budget increases? Poland now isn't that a strange thing with a Pole in charge of the budget?

The result will be the same as last time Dave will huff and puff and cough up our money to Mr Lewandowski citing treaty obligations or some other crap. What about your obligations to the British people who elected you Mr Cameron? It was amusing Mr Lewandowski could point out that Austerity Dave and Nutty Nick were in fact raising the UK budget by over 2% this year. Even at Eton people in glasshouses should not throw stones.

It must now be close to game over for Greece. The yield on their 10 year bond is now 15%. The ECB are intent on raising rates further. I smell a debt default, sorry debt re-stsructuring, within days. The EU 'crats must get their Easter holidays in first.

Portugal and Ireland will follow quick quickly with their debt restructure. Even the EU know they cannot be saved and anyway they are little countries a long way from Brussels but the Euro will still take a big hit.

The EU will then pull every trick in the book and break all the rules to try and save Spain. Currently Spanish bond to bund spreads have stabilised at 2.25%. It will be a close call but if Spain goes the Euro is dead as the EU currency. Spain's big problem as with the rest of Club Med is that tax evasion is the national game so government revenues will be badly hit.

I do wish UKIP were doing something to capitalise on this situation. They will never have more favourable conditions. The EU and the Euro are highly unpopular all over Europe. What we need is a star striker to put the ball in the net. What have we got? Yeovil Town reserves!

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