By Jay Heflin - 05/20/10 01:25 PM EDT
Since Greece, other EU countries have come forward needing loan guarantees. The IMF and the EU are now looking at a $1 trillion bailout to handle these claims, an effort in which the United States would be a participant.
Republicans contend Congress will have to borrow the money to pay its share of the bailout.
"We should not be borrowing money from the Chinese to bail out Greece, and if you connect the dots we are precariously close to doing just that," said Rep. Jeb Hensarling (R-Texas). "We can't even afford the bailouts in America, much less the bailouts in Europe. What's next? Intergalactic bailouts?"
House Republicans have devised the European Bailout Protection Act, a bill that prohibits any funds that have been drawn by the IMF from financing a European Union 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 that ratio.
Under these requirements, the United States would be prohibited from participating in the bailouts recently proposed by the EU.