tag:blogger.com,1999:blog-36227136.post4809512852826483130..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Europe’s Fiscal cliff? Hardly. OEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-36227136.post-1400720476493218452013-02-11T09:33:14.291+00:002013-02-11T09:33:14.291+00:00@anonymus
Depends in which timeframe you look at i...@anonymus<br />Depends in which timeframe you look at it. Obama is even making Hollande and Bush to shame. More structural it should be in the very high 10s.<br />Unless Obama can make a real welfarestae out of the US which seems very unlikely. Everybody with a brain in the US already has enough of him. In Europe that is different I know, but that is Europe and they cannot vote. Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-88079151048915232532013-02-09T15:51:23.525+00:002013-02-09T15:51:23.525+00:00My point was that the 15-20% reference in the post...My point was that the 15-20% reference in the post was wrong.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-5300593400516231712013-02-09T13:17:02.063+00:002013-02-09T13:17:02.063+00:00Hmm, do you want to check your calculation here?
...Hmm, do you want to check your calculation here?<br /><br />34bn = 0.0003% of 2011 GNI?<br />That implies GNI is 11,300,000,000,000,000 or 11.3 million billion euros<br /><br />IMF stats suggest EU GNI of 12,650 bn.<br />That would make 34bn about 0.3%...Igahunoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-52357845340241333822013-02-09T00:44:02.559+00:002013-02-09T00:44:02.559+00:00@Anonymus 8:49
And your point is?
That the EU shou...@Anonymus 8:49<br />And your point is?<br />That the EU should also go for a new world record (next to national taxes that are already substantially higher than in the US)? Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-39537696536538187802013-02-08T20:49:23.728+00:002013-02-08T20:49:23.728+00:00The US federal budget has been running at about 24...The US federal budget has been running at about 24% of GDP in recent years and has only been this high as a percent of GDP on one occasion post WWIIAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-30540333335257894332013-02-08T15:07:52.248+00:002013-02-08T15:07:52.248+00:00@Anonymus
You mean they are as irresponsible as th...@Anonymus<br />You mean they are as irresponsible as the US Congres running into commitments while the funding therefor is simply not there.Riknoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-14632306518417576702013-02-08T13:55:07.035+00:002013-02-08T13:55:07.035+00:00Thanks for the comment.
This is precisely the poi...Thanks for the comment.<br /><br />This is precisely the point we make in numerous posts see:<br />http://openeuropeblog.blogspot.co.uk/2013/02/the-accounting-details-that-could-make.html<br /><br />http://openeuropeblog.blogspot.co.uk/2013/02/how-is-new-eu-budget-shaping-up-latest.html <br /><br />Obviously commitments need to be paid out at some point (although some of the difference may not materialise due to cancelled projects etc). We have discussed this at length in several briefings and blog posts. This should be incorporated into the payments for the new budget (and within the respective political requirements of keeping the headline figure down) – i.e. it should encourage the EU to spend its money more effectively and selectively since this is clearly what national governments – and in particular those who actually pay the EU bills - want. <br /><br />Furthermore, even if the gap is “€200bn” (please do send a source over as it is an interesting figure….) that is still only 0.0016% of the 2011 EU GNI. Is this anywhere near on the same level as the US fiscal cliff which could have had an impact on the global economy? We would suggest not. It is an important and a technical issue which the EU should take note of. That said, “serious” politicians should try to communicate the issues to people in the correct manner rather than engaging in oversimplifications and wild inaccurate comparisons.Open Europe blog teamhttps://www.blogger.com/profile/14476470353790515912noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-26635296225023065842013-02-08T13:19:48.750+00:002013-02-08T13:19:48.750+00:00This blog misses the point. The EU budget is alrea...This blog misses the point. The EU budget is already carrying more than €200 billion in outstanding commitments. This means commitments (legal obligations) have been engaged but they have not yet been paid. In effect, this means the EU budget is already €200 billion in debt right now from the 2007-13 programming period. By setting payment appropriations excessively low for the period 2014-2020, there is a very real risk that very soon the commitments due in a given year (the legal obligations that must be paid in that year) will exceed the payments that can be made under the MFF ceiling for that year. That is the "cliff" that is being spoken about. In effect, the EU would be unable to pay its legal obligations and would default. Is this not a serious issue? The relationship between commitments and payments in the EU budget is complex, but "serious" commentators could make at least a little effort to understand it rather than sending out overly-simplistic messages. Anonymousnoreply@blogger.com