European Union Credit Straightjacket Threatens Rail Tunnel Through the Alps

28 de may de 2007

<body><div id="article"><tr><td height="28" valign="middle" width="184"></td><td valign="middle" width="185"></td></tr><h1>European Union Credit Straightjacket Threatens Rail Tunnel Through the Alps</h1><p>May 28, 2007 (LPAC)--One of the European linchpin infrastructure projects--the Lyon-Milan Rail Tunnel under the Alps, originally proposed in the Delors Plan--is threatened because of the EU's control of the economies of its 27 member countries, through the foolish financial standards of the EU's Stability Pact. Since such improvements in the physical economy are the only way to generate real wealth, the Stability Pact has to go.</p><p>Italy's debt is already 107% of its Gross Domestic Product, much above the EU's Stability Pact's 60% limit.</p><p>Paolo Costa, an Italian member of the European Parliament, and Chair of the European Parliament's Transport Committee, has urged the target be waived. Costa has estimated that Italy would have to contribute 6-7 billion Euros (about $9 billion) between 2007-2020 to build the tunnel. EU countries have until July 20 to respond to the EU's offer to fund 30% of 30 identified infrastructure projects.</p><p>Costa said, according to the <em>Financial Times</em> , that the Lyon-Turin Tunnel is "crucial" in meeting Euroope's economic goals, and that the Stability Pact rules should be flexible to allow Italy to invest in long-term projects to boost Europe's economy, helping it to solve short-term problems. Costa has called on the EU to convene a conference to persuade other member states to allow Italy and Hungary--which also has a large deficit--fund long-term projects.</p><p>But the EU Commission's officials said that it was unlikely Italy would get an exception, because that would open a "Pandora's Box," in the Commission's green-eyeshaded view, for other nations to buck the rules.</p><p>American statesman Lyndon LaRouche warned that the EU and its economic controls over member states would rob them of their sovereignty, and with it, the ability to launch the kind of FDR-style infrastructure required in a financial collapse.</p></div></body>