Should the UK contribute to the IMF Euro Bailout fund?
All attempts to resolve the Eurozone crisis have failed, and now countries such as the UK have been asked to step up. I don’t believe for a moment that the UK is in a position to help itself and I know that the likes of China and the US have already declined, choosing instead to see what occurs in terms of self-help. So if the US and China will not help out, should the UK?
The International Monetary Fund’s (IMF) MD Christine Lagarde is endeavouring to top up the IMFs collective fund from $390 billion to just short of $1trillion, with additional donations coming from anyone who’ll empathise with her plight to save some European heavyweights from the ongoing Eurozone crisis. As a Spain-based Brit looking at the UK, I just can’t believe that our troubled European neighbours might turn to the UK, a country who could easily find themselves in a similar situation.
Despite the ongoing problems and Greece potentially needing another bailout, in my personal opinion the UK are in no position to be assisting anyone out but themselves; how long will it be before a helpless UK needs bailing out? Just because it’s in a better position right now, doesn’t necessarily mean that it won’t be begging for help in a year from now.
With what she called “systematic stability” at stake, Lagarde hopes to amalgamate the funds of countries such as the UK to help avoid a crisis for the likes of financially unstable countries such as Italy or Spain. A trillion dollars is a lot its true, but it surely won’t come near to fixing the systemic problem that led to the crash in the first place.
Although the likes of the US and China remain reluctant, it’s surely a matter of time before they too, like the UK, are pressed on the matter and urged to re-consider their stance. Despite my desire for closure to this whole sorry episode, I find it difficult to argue with as they’re on the other side of the globe.
So, should the UK help out the latest Eurozone crisis? If I had to answer today my answer would be no; maybe a year or two from now and who knows, maybe it would eventually become economically viable. For now though it just seems crazy to ask the fragile to save the desperate.
By Patricia Trigiani.