Go to home page

The Ecofascist Federal State of Europe Is Born, Dubbed ‘Next Generation EU’

July 21, 2020 (EIRNS)—The EU Council ended at 5.30 a.m. this morning with a compromise agreement which every country can claim as a victory for itself. Italy, Spain and the other countries succeeded in getting that the total amount of the recovery fund—called Next Generation EU—was not reduced, consisting of €390 billion grants and €360 billion loans. However, in the process, the so-called “frugal” countries obtained a more intrusive control mechanism on the use of funds and large rebates in their payments to the EU budget. The condition for grants and loans is that they be used for green and digital investments and “in respect of the state of law.”

The EU recovery fund will borrow money from the markets by issuing EU bonds in the 2021-2026 period. After that date, the repayment of the bonds will go until 2058 and in order to be able to do that, the EU will introduce direct taxation.

A new direct taxation on plastic will be introduced already in 2021, however.

EU Unionists are ecstatic because the kernel of a European federal state, an independent EU budget, was born. The markets are ecstatic because they have earmarked that debt.

Member countries that want to draw from the new facility must present a plan by September, which will be analyzed by the EU Commission and within three months receive the OK or be rejected. The sherpas of the EU Council can oversee the plans in their implementation and, upon request of one of them, call a meeting of the EU Council to check on them.

When somebody makes their calculations properly, the outrageous character of the decisions taken at the EU Council this morning will become clear. In order to convince so-called “frugal” countries to accept the deal, they were given “rebates” to their payments into the EU budget, dramatically improving their net position. The Netherlands, leader of the four, got a rebate of €1.9 billion, which is a 78% reduction of their current net position (The Netherlands is a net payer of €2.46 billions to the EU budget).

Similar rebates have been given to Sweden (€1.069 billion), Austria (€565 billion), Denmark (€377 million) and even Germany (€3.671 billion).

“These gross reductions shall be financed by all Member States according to their GNI,” says the final release. This means that Italy, which is supposed to be a beneficiary of the EU “recovery” funds, will increase its payments into the EU budget.RT

Back to top    Go to home page clear