Are British taxpayers aware they are subsidizing Hungarian mortgage holders in difficulties?

The Europa Midday Express, (Reference: MEX/11/0609  Date: 09/06/2011) the daily EU propaganda summary, has the following paragraph included today. Unusually, for items likely to be offensive to British sensibilities, it is not in French but in English, therefore I quote it here, word for word:

State aid: Commission approves further extension of Hungarian mortgage support scheme for households affected by financial downturn

The European Commission has authorised, under EU state aid rules, a six-month prolongation until 31.12.2011 of a Hungarian mortgage support scheme to help households affected by the financial and economic downturn. The Commission found that the extended measures, initially approved on 13.07.2009 (see IP/09/1123), and extended on 24.11.2009 (see MEX/09/1124) and 12.12.2010 (see MEX 10/1208), were aimed at well-defined objectives of common interest and well designed to deliver these objectives and to limit distortions of competition. The Commission has therefore concluded that they provide aid of a social character to individuals, affected by a temporary income shock and at risk of losing their home, on a non-discriminatory basis and as such are compatible with Article 107(2)(a) of the Treaty on the Functioning of the European Union.

I trust the above gives a nice warm and charitable feeling to all those struggling to make ends meet in the UK, especially those who have recently opted to convert to interest only mortgages. Given the credit warning to the UK , of yesterday, threatening the country’s triple A credit standing, can you imagine that the higher interest rates that would then surely follow will happily be met as a quid pro quo from Hungary or others in the EU as “aid of a social character to individuals, affected by a temporary income shock and at risk of losing their home, on a non-discriminatory basis and as such are compatible with Article 107(2)(a) of the Treaty on the Functioning of the European Union”.

Below I quote Article 107 (2)(a) which demands non-discrimination, so UK underwater mortgage holders seem to have just been handed a lifeline! I don’t think!

Article 107

(ex Article 87 TEC)

1. Save as otherwise provided in the Treaties, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the internal market.

2. The following shall be compatible with the internal market:

(a) aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned;

(b) aid to make good the damage caused by natural disasters or exceptional occurrences;

(c) aid granted to the economy of certain areas of the Federal Republic of Germany affected by the division of Germany, in so far as such aid is required in order to compensate for the economic disadvantages caused by that division. Five years after the entry into force of the Treaty of Lisbon, the Council, acting on a proposal from the Commission, may adopt a decision repealing this point.

 

8 comments for “Are British taxpayers aware they are subsidizing Hungarian mortgage holders in difficulties?

  1. June 10, 2011 at 7:03 am

    We are now! 😡

  2. Sue
    June 10, 2011 at 7:17 am

    Well that’s hardly cricket. Why just Hungary? You either provide the scheme for all European countries or none at all.

  3. June 10, 2011 at 8:08 am

    I read a comment on a post a day or two ago about how Eurosceptics are the lunatic fringe and they’ll never get anywhere as long as they tie themselves to loonie groups like UKIP and the libertarians.

    Meanwhile, the British taxpayer continues to subsidize other nations’ failings, under the loving guidance of the Eurocrats and our gallant “leaders”. I wonder what the writer thought about that.

    • June 10, 2011 at 8:42 am

      James, this writer, for the sake of decency, presently chooses not to write any further for the moment. One of my other blogs “The Strasbourg Cesspit” has some years of detail as to the workings of the rip off and a poll at the top where one can vote for your choice of which group of low-lifes are mainly responsible:

      http://wontgo.blogspot.com/

  4. PT
    June 10, 2011 at 10:44 am

    How mean-spirited we all are! There must be at least 2 billion people on this planet living lives which they consider less than satisfactory. Surely, once we have exported all our industrial capacity to these places, we will then have time to spend the rest of our lives, as British Taxpayers, supporting all of them. They would do the same for us, wouldn’t they? We should support our rulers in their drive to pauperise us for the benefit of these unfortunate people.

    • June 10, 2011 at 11:34 am

      New Labour must be feeling pretty silly, having believed for years that only by letting people into the country could they solve world poverty.

      Strangely the Government web site where Grant Shapps, the Coalition Government’s Housing Minister, explains the aid offered to keep people in their homes (published yesterday), has no mention of the EU aid available under Article 107 (2) (a) of the TFEU. Is he asleep on the job? See here:

      http://www.communities.gov.uk/news/corporate/1918930

  5. fake
    June 10, 2011 at 10:58 am

    This article is complete rubbish.

    I refuse to believe that expenditure that is not politically accountable is mis-spent.

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