The EU has no money - Its Official!
In response to a formal question, the European Commission has admitted that it has "No financial reserves...". Nikki Sinclaire, independent MEP for the West Midlands, was shocked by the revelation.
"The Commission has actually admitted to me that neither it, nor the other EU institutions, have any financial reserves, and are effectively living from hand to mouth. In the event of member states failing to make their contributions on time, the EU institutions could find themselves unable to meet their considerable financial commitments."
"This is in the context of an economic crisis, where certain member states are actually being bailed out by the EU, and with others looking likely to follow suit" she said. "Belgium, for example, is the home of the EU institutions, and its national debt has risen to 100% of GDP. It is effectively a bankrupt nation."
Article 12 of the Council Regulation 1150/2000, however, allows for the Commission to spend money borrowed against future income. "It is a really perverse business plan that depends on being able to borrow from bankrupts", said Nikki.
Notes to editors:
Nikki Sinclaire's question to the Commission on financial reserves (P-000290/11) was submitted on Jan 14th 2011. The official response from the Commission was received on Feb 16th.