Photo: flickr/ mariocutroneo
A regular Belgian reader who prefers to remain anonymous writes in regarding Dexia, bailouts, debt, and the lack of a government.He describes the scene as the “ultimate disgrace.”
This morning, the following news broke and provokes A LOT of criticism, despair and anger:
The CEO of ARCO, one of Dexia’s main shareholders, which represents (among others) the Christian Trade Union (ACW), has told reporters this morning they will liquidate three of their subsidiaries (Arcofin, Arcoplus & Arcopar).
In a normal free market system you would think “oh, those shareholders will get creamed”. But, hey, welcome to Belgium, our government told those cooperative shareholders that the government will guarantee their investments.
Analysts calculated that this might cost our country an additional 1 billion EUR.
(source: http://www.tijd.be/nieuws/ondernemingen_financien/Factuur_Dexia_debacle_dikt_1_miljard_euro_aan.9127398-3095.art?ckc=1 )
What’s happening in Belgium is becoming a real farçe:
- no government for more than 520 days in a row
- government-forming negotiations which are in the dolldrums with no end in sight
- net debt which is rapidly increasing, not a single party is willing to take the necessary measures to cut government spending, all they do all the time is increase taxes
- organisations (such as trade unions) which are bailing themselfs out on the expense of the taxpayer (eg: ARCO)
- no leadership, no vision, nothing.
It is very sad, but one would start hoping for “the trojka” (European Commission, ECB and IMF) to intervene and impose highly necessary measures to our country. We will not get out of this mess by ourselfs.
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