It seems to me that Eurostat counts in € and the world bodies count their calculations in $. So to me the single biggest economic factor, in terms of growth, has been the recovery of the £ from around €1.05 and $1.5 respectively. Currently it’s at around €1.25 and $1.7 respectively.
So as I see it, we’ve been underpaying the EU Because our £ goes further. On the other hand France and Germany have been underpaying in € because??? Well the only thing I can think of is that they have been over-reporting their economic performance (in this case the GNI).
So let me try and work this through. The UK has been doing what it takes to recover the economy. Which recovers confidence but certainly is not recovering revenues as we are sliding further into debt again. Despite the recover. On the other hand Germany and France have been over-reporting their economy in order to keep their cost of borrowing down and keep confidence and their credit ratings up.
Now if I look at the charts, The EU has been charging too much/too little because Eurostat gave them the wrong economic figures. Were we lying? Well the ONS lies on a daily basis, but not really. We always readjust our figures to the correct value in the end and in terms of debt markets, under reporting instead of over reporting, is acceptable. The reverse is, if it were a person and not a government, Criminal. Just ask Tesco.
So we come to the politics of it. Right or wrong, Britain is being asked to stump up more money to support other EU countries. The sole reason being that Britain has bitten the bullet and enacted the austerity to grow the economy and the value of our currency. Most of the rest of the EU has not. Now Britain is being asked to fund their inaction.
If ever there was a socialist budget this is it. Punish the achievers and give the money to the underachievers.
Do we need another reason to leave? This is not an Anglo Saxon principle. We reward success. We don’t punish it. We punish failure and demand better in the future.
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Oh and adding the fact that the EU has just “aligned” our GNI calculation to include Illegal activities such as drug dealing and prostitution. They appear to be applying this retrospectively to our payments.
In the UK we do not count activities we cannot tax as part of our economy. That, to me, is common sense. But we all know the EU lacks common sense.
I just read an update from the FT. Seems this is retrospective from 2003 to 2013!!!!
You mean they can’t even get it right for a whole damned decade??? EU, born to fail. UK, not bound to support that failure.