The Euro Bill by INESS

INESS logo

Slovak think tank INESS, the Institute of Economic and Social Studies, calculated the total potential risk exposure related to Eurozone rescue mechanisms on per capita basis. It is published on the institute”s new project website eurokriza.sk (“eurocrisis”).

The Euro Bill summarizes total liabilities, guarantees and risk exposure created by bond purchasing programs, which were created as a part of the Euro debt crisis solution efforts. The total maximal risk exposure of each Slovak citizen is EUR 1,851 as of January 2012. Of this sum, EUR 350 per capita has been already activated in the form of loans and bond purchases. (Compare it with per capita annual personal income tax revenues in Slovakia: EUR 321).

Our goal was to provide a simple and transparent breakdown of all mechanisms, programs and actions, which have been created in haste of numerous crisis summits during the recent two years. Despite representing substantial liabilities for countries and their citizens, many officials lose track of all the liabilities mobile casino they bind their citizens with, not to say the general public.

Since there is a considerable risk of national credit rating downgrades and substantial costs for Slovak public finance in the future, it is important for citizens to understand at least the basics of what their representatives have signed.

Following table shows nominal value of all tools, which have been used in the Euro debt stabilizing effort. Slovak share is calculated according to the official participation level, or according to Slovak share of the institution”s base capital.

Follow the link to see the current value (updated monthly) of the Euro Bill.

 

Agreed

Provided

  EA total

EUR bln.

Slovakia

EUR per capita

EA total

EUR bln.

Slovakia

EUR per capita

Euro Bill

1 333

1 851

306

350

Bond purchase by ECB

213

272

213

272

EFSF guarantees

780

1 422

15

29

EFSM guarantees

60

64

31

33

IMF guarantees for EFSF and EFSM

250

83

27

9

IMF share on the Greek loan*

30

10

20

7

* (Add also your share on the first loan to Greece if you want to count the Bill for your country. Slovakia didn”t participate on the loan).

INESS – Institute of Economic and Social Studies, February 6 2012, Bratislava, Slovakia.

www.iness.sk, www.eurokriza.sk

INESS