This article addresses the leadership of the UK and their attempts to save the euro. The Prime Minister and the Chancellor have given their support to expensive bail-out schemes; Osbourne has committed tens of billions of pounds of British taxpayers’ money to the euro bail-out funds. However, the article states that the size of the various bail-out funds that are so far mobilized to help save the eurozone countries is much larger in real terms than the reparation payments and reconstruction plans of the First and Second World Wars combined. Clearly, this is a an incredibly large sum of money and much of the burden is being placed on UK tax payers who are already suffering from a decade of being encouraged to borrow money to help pay for the unaffordable standards of living. Therefore, helping to save the euro will only further devastate the UK.
The author is skeptical as to why the UK governmental leaders would even want to save the Europe when the author believes that euro has outlived its usefulness. What is more, the author states that if Greece reverts to its own national currency than the country would start to recover within months, and the same can be applied to Portugal and Spain. He makes these claims based on historical records that since the end of WWII many countries have quit fixed currency systems, and in almost every case that has been the moment when growth has been restored.
Therefore, it seems that it is in the UK’s best interests to avoid financial aid. The financial burden that will be placed on the UK citizens’ shoulders will cause consumption to plummet. While government spending will increase, it will be spent on saving the bail out eurozone countries. Industries will suffer without consumer spending and therefore companies will be unable to invest. Ultimately, the GDP will plummet and there will need to be efforts to help promote long-term growth.
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