Poland Needs to Spend 30% of Total Budget on IMF Bailouts to EU as Result of Merkozy Summit

Marcin, a reader from Poland writes ...

Hello Mish

Amazing but Poland's commitments after recent summits are to be 30% of our yearly budget! Where are this money going to come from is a great mystery to me as we are on a brink of reaching the constitutional debt limit of 55% of GDP.

Recently Merkel had confirmed Poland as being "very important" to Germany's plans and our Prime Minster and Minister of Finance both talked about Poland's accession in 2015 so this might indicate that both of above reasons might be in play.

However recent polls show that public does not like the idea of common currency (51% said no and only 17% yes) so why both of these gentlemen are so Euro-enthusiastic is far beyond me.

They are among the fools who think that throwing money on the debt issue will solve it once and for all. It looks like we learn nothing from the history as we are going to be f@#$ed again and unlike post WWII, this time by the western Europe.

Best, Marcin

30% of Budget to IMF? WTF?

As preposterous as that sounds, please consider this Google Translation: 100 billion zł in Polish for European bankrupts

European leaders have agreed to collect 200 billion for the International Monetary Fund to rescue the euro area. For Poland is to fall more than 100 billion zł - says the "Polish daily Gazeta."

The amount is one third of all Polish budgetary expenditure or as much on health care or modernization of our military spending by more than a dozen years.

Quoted by the newspaper of Adam Smith Center President Robert Gwiazdowski believes that it is absurd to issue our money to rescue Italy or Greece, which in addition can not be saved.

Time to face the truth and let the bankrupts fail, so they can start to build their economies from new on firmer foundations.

Please note the 200 billion number is in euros, while the Polish contribution is 100 billion Zloty.

Conversion of Zloty to Euro shows the Polish contribution to be 22.17 billion Euros, roughly 11% of the total contribution.

However, that 11% contribution is enormous to Poland. Reuters states Polish Expenditures for 2012 328.8 billion zlotys. Thus Marcin's math is correct. I calculate 30.41% to be precise.

Quite frankly it is idiotic to even think about giving 30% of a nation's budget to the IMF.

Federalists Have Gone Too Far for the Polish Opposition

On December 2, before this proposed idiocy, European Disunion reported Federalists Have Gone Too Far for the Polish Opposition

Just when you thought that European politics couldn't be any more unstable, Poland's main opposition party, Law and Justice, has called for Foreign Minister Radek Sikorski to be summoned to the State Tribunal - the Polish equivalent of impeachment - after a controversial speech on European integration. The speech, in which Mr. Sikorski ;extolled the virtues of a greater German role in dealing with the eurozone crisis - on the grounds that 'no-one else can do it' - and called for the Commission to be given greater powers over national budgets, has been interpreted by Law and Justice as a call for a reduction in Polish national sovereignty - an act that many consider tantamount to treason.

In a interview on public television, conservative liberal Law and Justice party leader Jaroslaw Kaczynski stated his intention to bring the Foreign Minister before the State Tribunal - which decides whether or not politcians have overstepped the bounds of the country's post-war constitution. He also added that 'most Poles do not want Polish independence to be a twenty-year interlude,' and declared that he would hold a 'march for independence' later in the month, following the sabotage by federalist activists of protests by smaller, fringe groups, on November 11th.

Polish Cowards Will Not Hold Referendum

Donald Tusk, Poland's Eurocratic prime minister, will likely not put this IMF contribution to a public referendum where it would promply be smashed to smithereens in a popular vote. Instead Poland's leadership will attempt to cram this monstrosity down taxpayer's throats, hoping no one notices or speaks up.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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