Italians have to lend to Spain at 3% but borrow at 7%????
A hat tip to A2 student Georgia Harrison for this clip from the European Parliament – Nigel Farage MEP, Leader of the UK Independence Party (UKIP) gives his view of the whole euro debacle. Some very valid points to a rather stunned audience. Here is part of his speech. Worth a look.
A hundred billion [euro] is put up for the Spanish banking system, and 20 per cent of that money has to come from Italy. And under the deal the Italians have to lend to the Spanish banks at 3 per cent but to get that money they have to borrow on the markets at 7 per cent. It’s genius isn’t it. It really is brilliant.