The Virus has Struck – Collateral for Aid Please

FinnishNews has been writing regularly about how the EU is incapable of making coherent and transparent policy decisions. It is almost beyond belief that 27 national states can sit in the same room when we all know that there is so much corruption within the system.

”Do you know how a man makes his way here? By brilliant genius or by skilful corruption. You must either cut your way through these masses of men like a cannon ball, or steal among them like a plague,  was written by Honore de Balzac, in Père Goriot. You will note that the writer was French – see below…

It is an appropriate description of many leaders in the EU (and elsewhere!) where we see malfeasance, nepotism, and open contempt for the Rule of Law by EU countries like Hungary and Poland. These two receive huge grants from the EU, and yet the EU fails to act to stop these abuses and our money flows freely into these countries.

We also have big companies that avoid paying taxes from profits generated by business activities inside the EU – and the EU fails to act. Countries like Holland, Luxembourg, Malta and Ireland arrange huge tax benefits for such companies, and the EU fails to act.

Greece, Italy and Spain and a few others have not put their house in order and the governments have huge debts that they can never repay. The banking system in all three countries is rotten with their balance sheets plagued by bad loans.

The European Central Bank (ECB) has now purchased huge volumes of these government bonds so that the interest rate remains low for these three countries allowing interest rate payments to be made. The ECB is complicit in covering up their problems with wallpaper and the EU does nothing.

Even when faced with open and systematic corruption by leaders, by big companies, by criminals the big EU machine just continues as if there is nothing wrong.

Now the Virus has exposed and magnified their weaknesses of these badly managed governments where criminals are collecting riches from taxpayers because they can control large parts of the basic services.

Now there is again talk of a common funding instruments for EU governments and this and similar proposals are being pushed by these southern countries.

Given the above there is little wonder that the Nordics and Germany are opposed to the mutualisation of the southerners’ recklessness.

When there is a pandemic the vulnerable must be protected. In this present case we know that the elderly are vulnerable with high death rates if infected.

However, Greece, Italy and Spain are not vulnerable in the same sense. There is no need to listen to them begging for our coins. They are rich countries governed by corrupt politicians and they need to get their house in order. If they want our money then we must ask and receive collateral and that means land, equity, or other assets of lasting value.

Finland paid reparations in full to Russia after the Second World War. It took many years and there were no handouts from other countries, just hard work and production at their own cost.

Why should the EU and governments like France be proposing generous handouts without reforms and with quid pro quo? Naturally, it is clear that France is asking for handouts in the form of Corona Bonds. For the uninitiated, French banks have big exposures to Italian and Spanish companies and banks. They are aiming for a bailout for their own banks at our expense, which Macron does not explicitly state. This is national interest politics at its best dressed up a an EU crisis!

Why should we go along with that?

Why not start thinking along more radical lines and demand real reforms and real collateral for any aid given. Why should we be expected to treat Italy, Spain and Greece any differently when we know that their government does not have any possibility to repay these new debts back at any time in the future?

What is the point of throwing good money after bad?

Photo: Wikipedia Commons – Ashwath Hegde 1810176

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