Tuesday, June 20, 2017

The 3.5 Billion Euro Story

I noted this afternoon in financial news from Focus....this one curious piece to the BREXIT story which very few ever talk about in public.

When the whole BREXIT deal is done and finished....with the UK gone....there is this problem of people who pay into the pot of the EU.  Let's call them the 'contributors'.

Presently, with the UK in the mix.....they are the number two contributor (Germany is the lead).  Out of the mix of money that gets funneled into a EU pot and redistributed (to show some remarkable great purpose and reason for the EU to exist).....back to the lesser folks of the union.

The amount missing after 2019?  11.5 billion Euro a year (that was the UK donation or contribution).  It's a fair amount of money, if you sit and think about it.

Oddly enough, with that 11.5 billion Euro gone.....you'd think that the EU would be talking about some changes in the distribution of yearly money.....their 'gift' to the lesser countries.  Well....NO.  There is no such conversation going on.

So if you do the math....and there is no cut, then the big boys at the table (France, Germany, etc) will have to put more into the pot.

According to the Ifo Institute in Munich....they've studied the issue and think the amount of extra money that Germany would have to find and give to the EU....would be near 3.5 billion Euro a year. In a three-year period.....ten billion Euro.  It's a fair sum of money if you think about it.

Do most Germans realize the shortfall and the rigged-up game that the EU has?  No.  You can go and ask a hundred Germans about this and find that no one knows about this EU budget shortfall, and how it might relate to them.  The 3.5 billion Euro?  It's a fair sum.

All of this brings me to this bit of odd management style.  In a typical company, when a financial shortfall starts to occur.....you have a meeting.  You discuss budget cuts and trimming the payroll.  You exercise restraint and do common sense things.  In this case with the EU?  They appear to be unable to conduct this type of management strategy.  The German government?  I doubt seriously that the public news media will talk about the 3.5 billion Euro...not only in 2017, but 2018, and most of 2019.  My humble guess is that the Solidarity Tax which is slated to run out in 2019.....will be revived and used to pay for this EU shortfall.....year after year.

Shocking for most Germans?  Yeah, if they knew this whole story and understood how it all works.

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