By Jay Heflin - 05/13/10 11:04 PM EDT
"All across America, people are suffering from bailout fatigue and yet the Obama administration is launching a new bailout bonanza: $8 billion in U.S. tax dollars for Greece, over $50 billion for the European Union, and perhaps billions more as European governments face the inevitable fiscal crunch caused by generous welfare benefits whose costs have become too exorbitant to pay," said House Republican Conference Vice Chair Cathy McMorris Rodgers (R-Wash.), in prepared remarks.
The bill, titled the European Bailout Protection Act, prohibits any funds that have been drawn by the IMF from financing an EU bailout until all EU nations are in compliance with their debt-to-GDP-ration requirement. It also requires the Treasury secretary to oppose any IMF loans until all EU countries abide by the aforementioned ratio.
Under these requirements, the U.S. would be prohibited from participating in the bailouts recently proposed by the EU.
The bill is co-sponsored by fellow vice chair Mike Pence (R-Ind.), Republican Conference Chairman Jerry Lewis (R-Calif.), House Appropriations Committee ranking member Jeb Hensarling (R-Texas) and Rep. Kay Granger (R-Texas).