It would appear that even when we are struggling to get our own back yard in order, we are still responsible for bailing out other countries when they hit broke. Yes, this is completely unfair, and the reason behind it is the fact that the totally inept previous Labour Government joined us up to such an arbitrary commitment, just before they handed power over to the coalition. Bless them, wasn’t that really sweet of them!
Unfortunately, the uk money market is now completely bound into this agreement and there is absolutely no way the new Government will be able to overturn this arrangement. This means that as the EU countries fall - one by one - we have to foot a share of the bill to bail them out.
This is totally disastrous as far as the UK economy is concerned. Even though we are not a part of the Euro, we still have to pay billions of pounds each and every time one of the EU nations falls. As the UK has one of the largest and strongest economies in the EU (I know, surprising, hey!), you can bet your bottom dollar (or Euro) that our share is not exactly light each time.
Thus far, we have already seen Greece, Ireland and Portugal tumble like a house of cards, however, all three of these countries are small fry compared with the massive expense if one of the biggest countries was to go bankrupt - namely Spain. Keep your fingers crossed that the austerity measures already in force in this country have a significant enough impact and prevent the country from holding out the begging-bowl.
