LONDON – England – It does not make sense as to why Britain should stay in the European Union when the risks to stay are higher than risks to leave.
What you won’t read in any Goldman Sachs funded EU propaganda and Britain Stronger in Europe (BSE) leaflets is the underlying question of fiscal sustainability of the EU in the long-term.
No amount of creative accounting can hide the vast holes in the EU budget, and sooner or later taxes across the eurozone are going to have to rise sharply to counteract this fiscal black hole.
With an ageing population requiring pensions, the eurozone is in decline population wise, the UN reveals this worrying trend in its population division analysis which shows that by 2050 the EZ will have an increase of 58% of the old age dependency ratio bringing massive costs to the eurozone.
Unfunded public sector pension liabilities across the eurozone are considerably larger than the UK, and many in the EU have little or no pension fund assets compared to the UK. If we remain in the EU, our pension wealth will be swallowed up by the eurozone pension liabilities.
The eurozone also faces a time bomb of growing public debt, OECD estimates calculate that by 2050 the cost of debt interest payments will rise from 1.8% of GDP to 6.9% of GDP.
To counteract this massive shortfall the eurozone will have to raise an additional 7.1% of GDP to meet the costs, or in 2014 monetary terms, the equivalent of €726 Billion per annum. This is more than five times the current EU budget.
These are the cold hard facts that the BSE campaign to keep Britain in the EU are not telling people. They are not revealing the problems with Greece’s economy, and with Italy, or the French problem.
Greece’s debt liability alone is €355 Billion and IMF leaks reveal that the country is set to default only one month after the UK’s EU referendum.
It would thus be insanity and economical suicide for Britain to remain in such a eurozone surfeited with huge debt, an ageing population and liabilities that compound risk to the United Kingdom.