‘EU’s actions could lead to revolutions in Greece and Portugal’
The expanded bailout fund will not help if Italy or Spain is dragged into the economic crisis, and the austerity packages are driving Greece and Portugal to revolutions, warned British European Parliament member Nigel Farage.
“They are having austerity packages pushed upon them, which is forcing them into downward deflation, which in my opinion could lead to revolution in Greece and possibly in Portugal, too,” Farage told RT. “What we are doing is stupid, and very, very dangerous indeed.”
“If Italy goes down, they would need a couple of trillion to bail it out,” he said. “And what it the point of bailing these countries out anyway? Are these bailouts helping people in Greece or Portugal? No, they’re not!”
“What they are actually doing,” he continued, “is giving money to these countries to give back to our banks, who over-lent to them in the first place. I mean, the whole thing is mad. What these countries trapped inside this economic prison called the Eurozone need is to devalue.”
Within the course of actions chosen by the EU, the Greek default is inevitable, Farage stated.
“I’ve been asking for nine months for a Plan B,” he said. “Could we please be grown up, could we please be mature, could we please be good Europeans and recognize that when the inevitable Greek default comes, unless we have a Plan B, on the first day there will be no money in the banks, on Day 2 there will be no bread in the bakeries. To date they have prepared absolutely nothing. I think what will happen now is that senior economists will begin to put together a contingency plan that allows Greece, Portugal and Ireland, too, to leave the Eurozone, reschedule their debts, get a new currency that devalues 50, maybe 60 percent. And as Iceland proved back in 2008, sometimes it is best to take the bad news, accept where you are, and start again. That is what needs to happen.”