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EU Economics

REVEALED: EU budget CRISIS as Juncker facing cliff edge over £200BN deficit

 

http://www.express.co

THE European Union (EU) has a growing debt mountain of £203billion (€238billon) and has admitted difficulties in paying its bills.

The European Commission (EC), which oversees the budget and is run by unelected president Jean-Claude Juncker, says it tried to make the funding crisis “disappear” .Luxembourg politician Mr Juncker, who represents the European People’s Party (EPP) and earns €304,212 per year plus allowances of as much as 15 per cent more, took over the budget of the bloc in 2014.But according to the latest “past due” figures, which the EC also calls “payment backlogs” and “reste à liquider” or (RAL), the funding gap has shot up dramatically in less than two years.

The RAL amounted to approximately EUR 238 billion at the end of 2016.

The EU Commission

The most recent officially reported figures were made public in a document issued by the European Commission in 2015 and were calculated at £22bn (€26bn).However, the EC is now facing an unprecedented crisis after it admitted to Express.co.uk £203bn is now owed.The commission has a seven year budget which it tries to administer on an annual basis using money paid in by member states.

Jean Claude Juncker earns a fortune and the money is running out GETTY             Jean Claude Juncker earns a fortune and the money is running out


According to think tank Full Fact: “In 2016 the UK taxpayer paid £13.1bn to the EU budget, and EU spending on the UK was forecast to be £4.5bn.”So the UK’s ‘net contribution’ was estimated at about £8.6bn.”Each year the UK gets an instant discount on its contributions to the EU—the ‘rebate’—worth almost £4bn last year.

“Without it the UK would have been liable for £17bn in contributions.”

Juncker poses with Blair, Ahern, Verhofstadt and BerlusconGETTY              Juncker poses with Blair, Ahern, Verhofstadt and Berlusconi in 2001


In a report by the European Parliamentary Research Service entitled “Payment backlog in recent EU budgets”, the black hole is said to be ”significant” and the authors add there is an “increasing level of unpaid payment claims at year-end due to insufficient payment appropriations”.It adds: “Since 2011, a problem of a growing backlog of unpaid claims at year-end has become significant.”After years of sluggish absorption of the amounts committed to EU programmes, especially in the field of cohesion policy, the flow of payment claims submitted by the Member States and other recipients of EU funds has accelerated.

Jean Claude Juncker is failing to manage the budget of the EU and is encouraging Nicola Sturgeon GETTY             Jean Claude Juncker is failing to manage the budget of the EU and is encouraging Nicola Sturgeon


“The development appears to be a relatively recent phenomenon in the implementation of the EU budget, so much so that data on it are somewhat incomplete.”The situation has continued to deteriorate, and in 2014 the payment backlog at year-end was estimated at approximately €26bn, corresponding to roughly 19 per cent of the payment appropriations authorised in the annual budget.”When asked to clarify the figure, a spokeswoman for European Commission said: “The RAL amounted to approximately EUR 238 billion at the end of 2016.

Mr Juncker shared a hilarious joke with Mayor Sadiq Khan of LondonGETTY               Mr Juncker shared a hilarious joke with Mayor Sadiq Khan of London


“As part of the negotiations for EU budget 2015 it was agreed that it is feasible to bring the payment backlog down to a reasonable level and make it disappear as a problem.”The information on the split of the full amount of RAL is not available for each Member State.”The consequence of carrying over payments from one year to the next was that each budget was short of money for payments already at the beginning of the year – leading to a steadily increasing amount of unpaid bills.

“At the end of 2014 this backlog had reached €24.7 billion for the 2007-2013 Cohesion programmes.”

Now UKIP Home Affairs spokeswoman Jane Collins MEP has blasted the commission insisting British taxpayers’ should not be forced to pay more to plug the gap.She said: “The simple fact of the matter is that the European Commission does not know how to handle money.”Apart from the logistical nightmare of trying to get member states to pay up, there’s the fact that their spending of taxpayers’ money is completely devoid of reality.

“You just have to look at the junkets Juncker, Merkel, Hollande and Rajoy have been on in recent months to know that they are at it.

“Do people think these leaders can jet around Europe to Rome, Malta, Versailles wining and dining and generally backslapping for free?

“The fact is there are people literally campaigning on the streets in every country in Europe due to the growth of abject poverty while these champagne alleged socialists are out there trying to sort the world’s problems without any idea of how to pay for it.

“It’s time this organisation was scaled back.”There’s a reason they have a payment backlog and that’s because they don’t know how to budget.”The fact that there’s a seven year budget is, in itself, a joke.

“These people are out of touch and the British taxpayer should not pay for any more of it.”

.uk/news/world/787674/EU-Euro-Budget-Crisis-Jean-Claude-Juncker-238-billion-deficit

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