Britannia Radio

UK's exposure to the EU adds up to £120 billion

The Bruges Group spearheads the intellectual battle against the notion of "ever–closer Union" in Europe and, above all, against British involvement in a single European state. The UK is facing a maximum combined potential loss of €149.2 billion on its current capital and financial commitments to the EU, the European Investment Bank and the European Central Bank. The figures for the UK’s total European liability, are contained and published in a new report by the Bruges Group. Titled The UK’s risks and exposure to the European Investment Bank and other European financial mechanisms, Bob Lyddon’s report for the Bruges Group reveals the true extent of the UK’s obligations in respect of the present and future debts of EU institutions including: How the Government’s defined position is questionable in law and therefore has led it to underestimate its full potential exposure to EU debt That the true extent of the UK’s potential exposure to the EIB, ECB and EFSM (European Financial Stabilisation Mechanism) the debt is €149.2 billion because: The ECB is entitled to call upon the Bank of England for up to €50 billion of the UK’s currency reserves. Under Council Regulation 1010/2000 of 8th May 2000, the ECB has the legal right to call on individual member countries’ national reserves (€50 bn in the case of the UK) should the viability of the ECB be at risk.  The EIB can call upon up to €35.7 billion[1] from the UK, should it lose money on the loans that it has made to governments and organisations in vulnerable economies such as Greece, Portugal, Spain, Italy and Ireland.[2] The UK currently has a €60 billion liability to the European Financial Stabilisation Mechanism (EFSM). Solvent members are required to jointly take on the insolvent member’s debt. The UK’s €1.9 billion of paid-in capital to the EIB and a further €1.6 billion to the European Central Bank (lodged to pay the UK’s share of its costs) is also at risk. Click here to read the full analysis If you are alarmed at the risk that Britain is being placed in by the EU holding this country liable for losses incurred by the EU institutions of the European Investment Bank and the European Central Bank, as well as the European Financial Stabilisation Mechanism, please disseminate this important information and contact your Member of Parliament who can be reached via www.brugesgroup.com/mpwatch To purchase a published copy of this book, please call Robert Oulds on 020 7287 4414 or reply to this e-mail, or online by visitingwww.brugesgroup.com/shop Members of the Bruges Group shall receive this booklet for free Click here to join the Bruges Group Footnotes [1] This would happen if the EIB’s questionable AAA credit rating were downgraded due to it’s having borrowed large sums from the money markets and lent to countries in the eurozone with an inferior credit rating. [2] This extra €35.7 billion of uncalled capital to the EIB is viewed by it as an ‘ongoing, unconditional and irrevocable’ commitment by the UK. It represents 39.6% of the EIB’s “broad risk-bearing capacity”, even though the UK is only a 16% shareholder. With quoted reserves of €2.13 trillion and a capital base of just €11.6 billion – a seemingly unsustainable loans-to-capital ratio – the EIB appears to be uncomfortably close to calling on the UK to bail it out. For having to pay over such large sums to EU institutions would almost certainly have the knock-on effect of jeopardising the UK’s AAA rating, further hampering her efforts to extricate herself from her own domestic economic problems. Notes: 1. The figure of €149.2billion does not include any financial exposure to the Eurozone via the International Monetary Fund (IMF). 2. Lord Sassoon (Commercial Secretary and Government Spokesperson for HM Treasury and Europe) - had effectively denied in Parliament that the UK is liable for losses incurred by the ECB. This research exposes the truth behind the UK's liability to the EU. -------------------------------------------------------------------------------------------------------- Honorary President: The Rt Hon. the Baroness Thatcher of Kesteven, LG, OM, FRS Vice-President: The Rt Hon. the Lord Lamont of Lerwick, Chairman: Barry Legg Director: Robert Oulds MA, Head of Research: Dr Helen Szamuely Washington D.C. Representative: John O'Sullivan, CBE, Head of Press: Jack Soames Founder Chairman: Lord Harris of High Cross, Former Chairmen: Dr Brian Hindley, Dr Martin Holmes & Professor Kenneth Minogue -------------------------------------------------------------------------------------------------------- For further information contact: Robert Oulds Director The Bruges Group 214 Linen Hall, 162-168 Regent Street, London W1B 5TB UK Tel: +44(0) 20 7287 4414 Mobile: 07740 029787 E-mail: info@brugesgroup.com