The eurozone collapse will hurt us all
THE developing crisis in the eurozone triggered by Greece has been most illuminating in terms of the way it has exposed the fundamentally weak foundations upon which the euro has been built.
We were told that Britain would lose out badly because it did not join and those of us who dared to point out its inherent weaknesses, were dismissed as cranks of the worst kind.
I take no pleasure in being vindicated by events when the issues at stake are so crucial. The collapse of the euro, which I predicted in an interview I gave to Russian television in March, is going to be damaging to us all.
The inherent dangers in creating a single currency for political rather than economic reasons, ignoring the hugely different economies of the countries involved, meant that the euro was always doomed to fail, with countries like Portugal, Italy, Ireland, Greece and Spain particularly vulnerable. Political zeal is no match for economic reality.
The think tank Open Europe has recently published research into what the euro’s supporters have said and I have picked out a couple of quotes that particularly stand out.
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“The decision to launch the single currency is the first step and marks the turning point for Europe, marks stability and growth and is crucial to high levels of growth and employment” - Tony Blair, BBC News 1998
“The euro is like a breastplate that will become more and more resistant. The stability of the currencies within its area is without question” - Yves Thibault de Silguy, the European Commissioner for Monetary Affairs when the euro was launched (1998).
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To read the full report, go to: www.openeurope.org.uk
Hedge Fund Regulation Moves a Step Closer: The infamous Alternative Investment Fund Management Directive came up for discussion and voting in the European Parliament’s Economic and Monetary Affairs Committee in late May.
Unanimous approval was expected but did not happen because 11 out of 33 present voted against the directive, including myself and my UKIP colleague Marta Andreasen MEP.
This spiteful directive is aimed at heavily regulating hedge funds. The key point to note is that Britain is the home for 80% of such funds but has no way of stopping this legislation, even if all of its 72 MEPs voted against it, when it comes before the full Parliament.
Its implementation is likely to cost the hedge funds �1.2 - �1.6 billion in the first year and recurring costs of up to �853 million per annum thereafter.
The net result could see European investors - ordinary savers and pensioners cut off from these funds and hedge funds moving out of the EU altogether, taking vast amounts of money out of the British economy and causing thousands of job losses.
David Campbell Bannerman is the lead UK Independence Party MEP for the East of England. For further information, go to www.dcbmep.com