Posted on 09/04/2023 8:41:10 PM PDT by RandFan
Brexit Britain is dodging the European Union's increasing demands for cash from its member states after leaving the bloc.
The EU is understood to be planning a €66bn (around $70bn ) increase in the 2021-2027 budget, as set out by the Commission in June.
An additional €20bn (more than £17bn) is earmarked for support for Ukraine.
While member states are supportive of the money going towards stymying Vladimir Putin's invasion, they are reportedly less keen on other areas of the boosted spending, as many countries face continued economic strife.
German Finance Minister Christian Lindner expressed his support for increased spending on Ukraine, but opposed raising expenditure in other areas.
Germany is performing poorly compared to other countries in the zone and has just cut corporate taxes by €32bn (£27.3bn) to stimulate growth.
Meanwhile, France is struggling to balance its own budget and Italy's GDP growth is stuttering towards stagnation.
Writing for the Telegraph, finance columnist Matthew Lynn argued the EU is "running out of other people's money".
The EU has substantially ramped up its spending in recent years, including a €750bn (£641bn) Coronavirus Recovery Fund and a high level of support for Ukraine.
(Excerpt) Read more at msn.com ...
Extraordinary....
“Ukraine must be funded at ALL costs, even above the needs of their own people.”
So, like the USA, then ?
“While member states are supportive of the money going towards stymying Vladimir Putin’s invasion,”
I believe it was approved by the Russian Parliament, so it’s “Russia’s Invasion”, but I do understand the Alinsky tactic being used here.
Which Countries are EU Contributors and Beneficiaries?
Note: these are the budgetary transfers only. In addition there many “instruments” whereby Finland for instance takes loans and bails banks out, and sends the money to home repairs in Italy or some such
Wow! Look how much Poland is bleeding Germany. Just wait to see the suffering by the poor German citizenry if Ukraine gets into the wonderful EU.
British citizens should thank the stars for Brexit.
Who’s the EU knute in the picture?
their el presidente
It was always source of contention in Britain (net contributor). Germany doesn’t care for some reason.
Maybe in future they will
Germany (and France) benefit from the EU because they dominate the EU politically and the rules governing finance, trade, and the Euro are rigged in their favor. On the whole, their monetary contribution to the EU is smaller than their net benefit from the arrangement. When Britain was in the EU, they found that the benefits of EU membership were less than what they had to pay.
How the hell is tiny little tax haven Luxemburg.....one of the richest countries on earth....a net recipient? Yet they are.
I understand why countries that were formerly trapped behind the Iron Curtain for 45 years and denied Marshal Plan aid are net recipients.
Germany has long had a mercantile trade policy. They wanted to be able to prevent countries from competitively devaluing their currencies so as to make their goods cheaper in foreign markets....thus competing against German goods. One of the huge benefits Germany got was a lot of the rest of Europe - especially southern Europe - joined the Euro and was therefore locked in on the currency. No more competitive devaluations of the currency. Essentially, Germany was buying export markets.
Brexit Britain is dodging the European Union’s increasing demands for cash from its member states after leaving the block.
Equity rears its ugly head, those who have must share with those who dont or else
Exactly. Germany also extended credit to finance the transition, furthering the evolution of the EU political and currency union into a finance and budget union.
‘...running out of other peoples’ money...’
Maggie Thatcher was SO right!!!
Speaking of running out of other people’s money...
—”competitively devaluing their currencies so as to make their goods cheaper in foreign markets”
Long ago I heard Milton Friedman answer this very question.
In an instant, he said, ‘If that were so, the high-inflation countries would be the world’s leading exporters, and it does not happen.’
HOORAY for BREXIT!!!
I remember those involved with it and they were HEROES.
It does not happen because they are inefficient and have structural issues which got them in trouble and needing to deflate their currency to stay competitive in the first place. So any advantage gained by a competitive devaluation is often squandered...BUT, they do get a competitive advantage from it. Why do you think China buys so many T-bills? Its to keep the Yuan down so as to boost their exports.
—”Why do you think China buys so many T-bills? Its to keep the Yuan down so as to boost their exports.”
Not that I disagree, but to point out that China attempts to maintain a tight relationship with the dollar; by any means necessary.
The true(?) value of the yuan is a different matter.
That said, inflation and devaluation are not the same.
Sure it made sense in 1947. but it stopped making sense in 1992.
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