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A Little Math on the New EU Present to Kiev Nazis

Now that the Hungarian veto has fallen, the way is free for the EU € 90 billion “loan” to Kiev. The money will be borrowed on the markets, under a guarantee of EU state members. The guarantee will be shared as usually according to EU budget share: Germany guarantees for one quarter, Italy for one eight etc.

The loan is intended to be repaid through Russian “reparations,” which is a joke. Never in history, a nation has paid reparations without being defeated. Thus, the EU is guaranteeing something that will never happen: a defeat of Russia. The “loan” will be therefore repaid by EU member states, i.e. EU citizens.

However, the loan is bearing interest and a maturity, which means that at the end, the amount to be repaid might be twice as much, as anyone who has taken out a mortgage to buy a home knows well. With a 3-4% interest rate and a 20 years maturity, based on typical EU schemes, the total debt to be repaid will be €197 billion, of which 107 will be interest rates. This means that for instance, Germany shall put almost 50 billion, while Italy 25 billion, on the table.

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