The EU leaders are now trying to bully member states into staying by demanding that if they leave the Euro, all their debts must be settled in full, immediately.
Mario Draghi, President of The European Central bank is leading this campaign of intimidation.
Any club that has to financially and economically coerce members into staying in something which isn’t working for them isn’t worth being a member of. Italy, Greece, Portugal, and Spain to name a few are being crippled by the EU’s economic policies and getting worse daily.
And how could the EU truly enforce this demand? The debts the countries have are not to the EU body because that doesn’t lend money. The debts are to financial lenders such as the IMF, European Central Bank, and other lenders in other member states.
For example Banco Santander (Spain) and 2 major French banks including BNP Paribas hold a huge amount of Italian government debt. The EU can’t force those independent lenders to call in the debts. The probability of default on these debts gets higher with every bailout as every bailout itself causes more debt for the countries involved. It’s a mile-high house of cards. Trying to call in such a debt overnight would lead the country to say simply ‘cant pay’ and possibly declaring themselves insolvent, leading to massive economic shockwaves across the whole of Europe.
The leader of Five Star, Beppe Grillo, has already said that if he takes the reins in italy he will declare at least some (possibly all) Italian government debts unpayable.
Now to why this is important for the UK and why we need a quick Brexit, not Theresa May’s unnecessarily drawn out Article 50 approach.
The EU’s dogmatic, bullying and oppressive attitude towards member states is one of the reasons why Theresa May should choose to effect a very rapid Brexit by repealing the 1972 European Communities Act.
The financial institutions of the EU member states are crumbling under mounting and crippling debt levels which some cannot hope to repay. If we are still technically in the EU and one or more of the financial cornerstones of the EU simply go bust, the resulting fallout could have devastating financial consequences for the UK.
Simply put, invoking Article 50 means we are still part of the EU while negotiations proceed. Therefore, while we technically remain a member of the EU and pay into the EU, we will no doubt be requested or even required to bail out future financial failures.
If Theresa May wants to remove us from the threat of being forced into a crippling bailout of the Euro – a currency we aren’t even part of – then she needs to get a move on and repeal the 1972 European Communities Act.