EU cash running out, warns MEP

Paul Nuttall, UKIP’s Deputy Leader

The financial shambles of the EU means that it will run out of money in four weeks, warned UKIP deputy leader Paul Nuttall today (22 October).

"It is just extraordinary that it looks set to fall foul of a massive shortfall next month unless a budgetary amendment can be agreed," he said.

"And I am extremely concerned that while the matter was presented to Parliament by President Martin Schulz, it would seem that a mass incompetence or cover-up is taking place.

Schulz told MEPs he had received a call from Commission President Jose Manual Barroso telling him that the Commission would be unable to meet repayments come the middle of next month unless additional funds were made available in the annual budget of around €2.7 billion.

He stated direct payments from member states are required to make ends meet to stop the Commission from defaulting in November. The shortfall is apparently due to non-payment of customs duties.

The figure is in addition to an extra €3.9 billion which the Parliament had expected to approve this week. However the amendment has yet to gain Council approval after the UK blocked the matter from being discussed at the last Council meeting.

Debating the supplementary budget will now be delayed until the end of October, stoking fears that the EU will be unable to meet repayment requirements in November.

"On the heels of the situation in America an EU default would send a shockwave through the already fragile economies of Europe," said Mr Nuttall, North West MEP.

"The EU will have to come with a begging bowl to the 28 member states for more cash or risk going bust, and they will have to do so very quickly indeed.

"This is a real predicament for them, at a time when the Eurozone economy is still struggling with mounting debt and when ill feeling towards the EU project has never been so low, it is no wonder they are trying to desperately keep this out of the media.

"The situation could be eased by them selling their assets as they have demanded on countries such as Greece and Portugal. The EU in Brussels, Luxembourg and Strasbourg has huge chunks of expensive real estate which could raise a lot of money.

"I suggest Barroso and his cohorts should sell these and house their army of over-paid EU officials in ordinary offices like every other group of civil servants.”