Borrowing from Bankrupts
By Marta Devon on Tuesday, February 22, 2011 - 06:11In 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. It took the EU Commission a full month to come up with an answer. 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.
"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" Ms Sinclair added continuing that "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"- Nikki Sinclaire, MEP
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", concluded Ms Sinclaire.
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