Tuesday, January 31, 2012

UK: EU drags Britain into abyss

Source: Pravda

Darya Deryabina


Great Britain did not welcome the euro and preferred to keep the good old British pound sterling at some point of its history. However, the country found itself in deep debt, like many of its European partners. Every minute of the EU membership costs London 100,000 pounds. Many Britons pinned their hopes on the Conservatives, but the latter failed to cope with the financial crisis.

Common British people were ready to worship David Cameron after Gordon Brown failed to handle the burden of responsibility, which he had inherited from his predecessor Tony Blair. It became obvious for many that the two-party majority system was unable to handle the financial crisis. The British associate the Conservatives with the deeds of Mr. Winston Churchill. However, it becomes obvious nowadays that the global economic plague has reached the world's most stable reserve currency - the pound.

Surprisingly, Britain suffered from the world financial crisis most in Europe. The GDP of the country has dropped by five percent during the post-crisis period, which became the worst result among all developed countries. There is a list of countries, for which the EU recommends to scrape and save. It particularly goes about the PIGS team - Portugal, Ireland, Greece and Spain. However, all those recommendations do not touch upon London. The United Kingdom is a member of the European Union, although it does not use the EU currency. Therefore, the problems of the Eurozone are not the problems of the British administration.

It is worthy of note, though, that the difference between the currency reserves and the common debt of the country is immense. Britain's debt obligations make up more than a trillion pounds, which is 64.2 percent of the GDP. EU officials criticize London saying that it was the joint European market that let England become one of the world's financial centers - a quiet harbor which attracts investors from the whole world.

David Cameron faces a tough choice now: either to pull out from the European Union or follow the common rules of the game. London has never been affectionate to other countries of the European Union. Britain is still full of imperialism, no matter how hard British politicians try to cover it. British Finance Minister (the Chancellor) George Osborne hurries to cut the budget deficit to prove to his counterparts that his country has all reasons to veto the innovations of the European Union.

As usual, we can see that the Conservatives are more concerned about the condition of state finances rather than external obligations, which the country has to its creditors.

However, the United States feels more or less ok with its foreign debt of $15 trillion. America continues to give the world a long song and dance about the stability of the dollar. The pound does not have to worry about anything against such a background.

The Labor Party has brought discredit upon itself. Last year's riots in Britain clearly showed that the people were fed up with the governments that tried to play with European neighbors. The Cabinet of Ministers capitulated in the situation when the split in the British society became evident.

As for the public opinion of the British citizens, only ten percent of them want to join the EU. Twenty-nine percent want England to pull out from the shattering organization, a poll conducted by YouGov said. Every minute of membership costs London 100,000 pounds. The budget of the country loses nearly 50 billion every year.