In a little noted Financial Times article yesterday, it reported:
The European Union’s public debt could by 2014 rise to 100 per cent of gross domestic product – a year’s economic output – unless governments take firm action to restore fiscal discipline, EU finance ministers will be warned on Monday.
The EU claims that the measures the countries of the union took to “rescue Europe’s financial sector and combat recession” are to blame.
But then, 7 or 8 paragraphs later, we get to the real “tip of the iceberg”:
The Commission identifies five countries as at particular risk – Greece, Ireland, Latvia, Spain and the UK – because their public finances will come under strain from large increases in pension and healthcare costs, and high deficits triggered by the financial crisis.
This is particularly the case for Greece, which faces the second-highest increase in age-related expenditure in the EU, while its high debt ratio adds to concerns on sustainability.
Pension and health care costs? Translated into US lingo – Social Security and Medicare. You know the two programs with 50+ trillion in unfunded future liabilities? So tell me again why we want to go even further off this debt cliff by enacting government run health care?
Thursday, November 12, 2009
Don't go there
I can't get to the original article, but McQ at QandO links to a Financial Times piece that documents the dire straights the EU is in due to the drain of nationalized health care.
Posted by Freeven at -- 2:03 PM