In a shocking reflection of the recent budgetary crisis in America, the EU looks set to fall foul of a massive shortfall in November.
Parliament President Martin Schulz told MEPs this morning that he had received a call from Commission President Jose Manuel Barroso who warned the EU would default unless it was given an extra €2.7 billion from member states.
In an extraordinary development it would seem that the UK blocked discussing a €3.9 billion amendment to the 2013 budget from the recent General Affairs Council meeting, leading to any budget debate being postponed which could lead to potential default.
Debating the supplementary budget will now be delayed until the end of October, stoking fears that the EU will be unable to meet repayment requirements in November.
An EU default would send a shockwave through the already fragile economies of Europe,
UKIP Leader Nigel Farage warned: “It’s utterly staggering that the EU is now looking likely to default on debt repayments unless a budgetary amendment can be decided. In essence, the EU will have to come with a begging bowl to the 28 member states for more cash or risk going bust, and they will have to do so very quickly indeed.
“The EU are trying desperately to keep this out of the news. It’s a real predicament for them, at a time when the Eurozone economy is still struggling with mounting debt and a stunted recovery and when ill-feeling towards the EU project has never been so high.
“Yet with the recent widely reported budgetary crisis in America, it’s unlikely they will be able to stop the cat from getting out of the bag.
“David Cameron must assure that British people that Britain will absolutely not bail out the EU. If the EU can demand that countries like Greece and Portugal sell off assets to raise money, then why not the EU as well? The EU in Brussels, Luxembourg and Strasbourg has huge chunks of expensive real estate which could raise a lot of money. Barroso & Co should sell these and cut their army of over-paid EU officials like they demanded Eurozone member states do to hundreds of thousands of civil servants.”