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EU Referendum

BOMBSHELL BRUSSELS ADMISSION: EU chief drops HUGE gaffe which shows why we need a Brexit

THE European Union is actively making workers across the continent POORER, a top Brussels finance chief admitted today.

German economy minister Sigmar Gabriel

GETTY  German economy minister Sigmar Gabriel has admitted the EU is making people poorer


German Economy Minister Sigmar Gabriel dropped the stunning gaffe whilst discussing the policies of the European Central Bank (ECB).He conceded that the EU’s policies are depressing the earnings of low-paid workers and pensioners, who he patronisingly dubbed “the little people”.

The jaw-dropping admission will anger eurosceptics across the continent, and comes just days after the Dutch people gave Brussels a bloody nose in an EU referendum.It will also add further to the assertion of Brexit campaigners that the EU project is having a negative impact on Europe’s economy.

Although the bank’s decisions do not directly affect British people, the Remain camp has made the importance of the EU economy to our own jobs and prosperity a key point in its argument for sticking with Brussels.

German economy minister Sigmar Gabriel and Angela Merkel

GETTY   Mr Gabriel’s comments will enrage Eurosceptics across the continent


 The European Central Bank headquarters

GETTY   The ECB’s decision to keep interest rates low is hammering savers and low earners


 Speaking today, Mr Gabriel told reporters that the ECB’s ultra-low interest rates are making “little people” like workers and pensioners poorer.

The bank – which is run by the 19 Eurozone nations – recently cut its interest rate to -0.4% in a desperate bid to encourage borrowing to kickstart the bloc’s ailing economy.

But a period of prolonged negative interest rates has had a devastating effect on savers and lower earners, who have seen the value of their take-home money shrink in real terms.

Pensioners have been particularly hard hit, with their accrued pots now worth less than they expected them to be.

Greek protestors burn an EU flag

GETTY   European financial policies have sparked growing anger in countries like Greece


 Dutch people voting

GETTY   Dutch voters this week roundly rejected an EU plot to expand into Ukraine


And Mr Gabriel admitted: “What the European Central Bank is doing now is for many savers, for little people, for workers, for pensioners, an expropriation.”

But he insisted it was “not the ECB’s fault”, and instead laid the blame at dithering EU leaders who he says have not done enough to promote jobs and growth across Europe.

He raged: “The blame lies with Europe’s inability to put together a joint growth programme, always with the argument ‘we have no money’.”

His comments were today likely to enrage many populations in southern Europe who believe they have been sacrificed at the altar of German manufacturing.

Many Mediterranean states which were encouraged to join the Euro now desperately need to devalue to kickstart growth, but cannot do so because they are tied to the single currency.In contrast German manufacturing exports have boomed, with costs kept down by a Euro which is much weaker than the equivalent Deutche Mark would be.

That is because investors looking to buy into the Euro have to take a gamble on the state and reliability of the entire Eurozone economy, and not just that of Germany.

The relatively low productivity of the the southern European countries, such as Greece, Spain and Italy, therefore counterbalances strong economic performance in Germany depressing the value of the currency.

Mr Gabriel’s comments come amid an increasingly fractious debate across Europe about the role of Brussels.This week the Dutch public overhelmingly rejected a plot to extend the EU’s tentacles into Ukraine, with just under two-thirds voting to block the deal.

Meanwhile in Britain, campaigners who want to leave the EU have argued that sclerotic regime is a drag on the UK economy.

But the Government, which is fighting to retain ties with Brussels, insists jobs will be put at risk if voters opt to leave on June 23.

http://www.express.co.uk/news/politics/659481/European-Union-Brussels-finance-ECB-central-bank-poorer-Cameron-Merkel-Brexit

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