We could pay £5,000 each to bail out Europe

Updated: 

Christone LagardeAP

There are lots of things we can't afford at the moment: luxuries like holidays, and heating for example. However, it appears we can afford to bail out European nations to the tune of £5,000 for every household in the country.

But why do we have to spend this money, and should we really be bailing them out?


The bailout
At the moment, it hasn't been confirmed that we'll be called on to dig deep for this cash. What we know so far is that the bailout of European countries by the IMF is expected to be so huge that it doesn't have enough cash in its war chest to pay the lot. It will call on countries around the world to fill its coffers, and Britain's share of that would be around £115 billion - or £5,000 per household.

Christine Lagarde (pictured), the managing director of the IMF, said the cash it has at the moment "pales in comparison with the potential financing needs of vulnerable countries".

This comes on top of the £12.5 billion we have already handed over to Greece, Ireland and Portugal in loans in an attempt to bail them out of their individual financial crises.

Should we be doing this?
It's clearly a spectacular sum of money at a time when we have been going through real pain in the UK in order to cut expenses. It begs the question of why we are all feeling the pain of austerity so harshly when a small fortune is going to have to be handed over to save other countries. If we're going to blow the budget on Europe, can't we keep the NHS and our pensions too?

However, the problem here is that the scale of the crisis in Europe is so massive that we cannot afford not to help out. If we allowed struggling countries in Europe to fail, then not only would it mean financial disaster for our European cousins but the ripple effect would soon spread around the world. Larger European counties would be pulled under, banks would collapse not just in Europe but in the UK too, which has made massive loans to European banks, and governments would be called on to bail out the banks or watch the devastating consequences of a banking failure.

And while we can stand firm refusing to make money available to prop up the Euro, it is in nobody's best interests to refuse the IMF and watch the capitalist system collapse around our ears.

It seems, therefore, that the NHS and pensions will have to wait - along with the heating and the holidays - the European need for our money is greater than ours.

But what do you think? Let us know in the comments.

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