Senator Jim DeMint (R-SC) has introduced the European Bailout Protection Act. It would “halt U.S. participation in the proposed bailout of European Union (EU) countries, including Greece,” according to a press release.
Specifically, the bill would: 1) Prohibit any U.S. funds that have yet to be drawn by the International Monetary Fund (IMF) from being used to provide financing to any EU countries until all EU nations are in compliance with the debt to Gross Domestic Product (GDP) ratio requirement in their own collective growth pact, and 2) Require the U.S. Treasury Secretary to oppose any IMF loans to EU nations until all EU countries are in compliance with their debt to GDP ratio requirement. The bill does not permanently prohibit the IMF from lending to these nations, it simply prohibits U.S. contributions to the IMF from being used to loan money to these nations until they can bring their debt to GDP ratio to 60 percent.
(credit image – daylife/getty)
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