A €750 billion package has been agreed by European finance ministers to support the embattled Euro and stop the Greek crisis spreading to other countries..
€440 Billion comes in the form of loan guarantees from Eurozone member states.
€250 Billion comes from the IMF.
But the part of the package that concerns me and should concern every other UK taxpayer is a sum of €60 billion from the European Commission for emergency funding.
The legal basis for this mechanism is article 122 of the Lisbon Treaty that allows money to be sent to countries within 48 hours in the event of a natural disaster or other exceptional event beyond its control.
Despite Chancellor Alastair Darling claiming last night that he has ruled out any chance of the UK propping up the struggling euro by contributing tax money to a new EU bail-out fund he has indicated he will support this mechanism. However as the EU budget is not allowed by law to go into debt any default would result in the 27 members having to top up the budget. Britain would be on the hook for its share of the losses which amounts to 12% or €7.2 billion.
The most immediate candidate for support is Greece, clearly they have not suffered a natural disaster, I would argue that their financial mess is of their own making and was most definitely not outside of their control. We have enough debt of our own after thirteen years of Labour Government without being called upon to bail out Greece.
So far the media has skipped across the waves of this story without making Britain's €7.2 billion commitment clear. Take a look at is BBC propaganda article, you would think there was only an upside and would never discern that we the British taxpayer are on the hook.