[Ed – This is the second part of a three-part series. You can read the first part here on UkipDaily.]
So why do all the pro-EU MP’s in Westminster and those in the unelected House of Lords want the UK to stay in the EU? They claim that the UK’s economy and our trade will suffer after Brexit. But they quote no figures to support their feeble contentions. So, let me quote some factual figures which they dare not mention as they destroy their case for staying in.
1. The economy will suffer because of Brexit
Why? Being in the EU commits the UK to vast financial liabilities such as;
a) Annual budgetary contributions and other payments to the EU over which we have no absolute control whatsoever. Currently, these are approximately £10 billion/annum for the budget
Since 1973, the UK has given our competitors in the EU over £400 billion cash of UK taxpayers money in net budgetary contributions. This all had to be borrowed and the interest on this amount must currently cost the UK about £10 billion/annum. The net budgetary contributions amount to about 20% of our national debt, which is approaching £2 trillion. In addition, the UK’s VAT contribution and customs duties paid to the EU amount to about another £5 billion/annum.
b) Extra costs of up to about £1,000/year on our housekeeping due to tariffs imposed by the EU on imported goods and the EU’s demands that we buy goods from the EU at inflated prices.
This has had disastrous effects on the poorer countries of the world and the Commonwealth which did so much for the UK in the last two world, and other wars. For example, the New Zealand lamb and butter exports to the UK and sugar exports from the West Indies were badly affected by EU demands that the UK imported these items from the EU instead, thus increasing our cost of living. In addition, UK households paid about £2.5 billion/annum for VAT contributions and EU taxes on non-EU imports into the UK.
c) Current cost to the UK economy of being in the EU estimated to be in the region of £185 billion/annum (Prof Tim Congdon, “How much does the European Union cost Britain”). This is an overhead cost on the whole UK economy, not just the 12% or so involved in trade with the EU.
This figure can be used to show that since 1973 being in the EEC/EU could have cost the UK a current total of over £8 trillion. Whatever the precise cost is it is obviously well past the time the UK made a bonfire of un-needed EU regulations and directives. Only possible after a full and unfettered Brexit!
d) In his report, “The UK’s liabilities to the financial mechanisms of the EU” published by the Bruges Group, Bob Lyddon, of Lyddon Consulting Services Ltd., concludes that:
“The net effect (of leaving the EU) would be a need to refinance GBP30 billion via the UK Debt Management Office, thus increasing the UK’s direct national debt whilst releasing the UK from contractual commitments up EUR 1.23 trillion and the inferred obligation to offer “extraordinary support” of an unlimited amount above that.” (My emphasis.)
“The case for leaving the EU immediately to avoid heavy payments to the EU is therefore overwhelming.”In addition, leaving the EU will avoid the next generation of UK taxpayers probably having to help finance the €30++ trillion tax liability for future EU civil service pensions which have to be paid out of current taxes.
e) The European Central Bank commissioned a report by the Research Center for Generational Contracts at Freiburg University in 2009. This showed that the 17 EU countries investigated had almost 30 trillion euros, (equivalent to1 million euros/UK taxpayer), of projected obligations to their existing populations. As the UK generally pays about 16% of the EU’s total contributions this implies that the UK would be exposed to contributing a minimum 160,000 euros for each UK taxpayer over their working life to support the EU’s pension liability.
Germany accounted for 7.6 trillion euros and France 6.7 trillion euros of the liabilities, authors Christoph Mueller, Bernd Raffelhueschen and Olaf Weddige said in the report. The largest pension liabilities in %GDP can be found in France (362.2%), Poland (361.1%), Austria (359.9%) and Germany (329.6%). This was before the massive influx of immigrants into Germany and the EU generally.
The UK had one of the lowest pensions in the EU and the lowest liability of the 18 countries examined at 91.2%. Despite this, the UK pensionable age is likely to rise to 68 from 60 in a few years. What does that say about the pension prospects for countries like France, Poland, Austria and Germany with pension liabilities which are over 3 times their GDP?
f) The level of toxic debt of €1.06 trillion within the EU banking system is sizeable equating to 5.4 percent of the entire EU’s total loans – a figure more than treble that of other large banking sectors such as Japan and the US.
g) The level of government debt to GDP ratio for the Eurozone is nearly 89%. For Greece it is 177%, for Italy and Portugal, it is over 130%. With “friends” like these to support who needs enemies?
The UK has a national debt rapidly approaching £2 trillion, yet the UK is regarded as the financial “milch cow” of the EU to be squeezed until the final drop is expended.
h) The level of unemployment in the Eurozone is very high, particularly for the young. This is not a good indicator for stability in the region for the future.
Germany has 3.6% unemployment and Greece has a youth unemployment rate of 48%. Anyone might think that a single currency and a single interest rate might not be appropriate! However, the pro-EU elements would argue that only foolish anti-EU people would think that as they don’t understand the value of ‘the project’, which is to destroy the UK as a sovereign, independent and democratic nation and make the UK a vassal region of the EU.
[Ed – you can read the third part of this post on UKIP Daily here.]