The European subsidies for farmers are being criticised. In the past, it accounted for over 70% of the European Union spending. Now it accounts for 39%. But it is still heavily criticised. The side effect of this policy? Farmers who should go bankrupted decades ago are still in the business. All at the costs of African farmers and those from the underdeveloped areas of the world seeking to get ahead in life.
People forget the second largest spending of the European Union. The redistribution of the ESIF (European Structure Investment Fund). The fund accounts for 30% of the European Union spending.
The cohesion project is the closest the European Union gets towards the wealth redistribution.
The cohesion fund is largely being paid for by Germany and France. Although they are not the top contributors to this fund. The money gets from the rich countries to the lower and poorer countries in Europe.
If we look at the effectiveness of the money we see that has almost no economic impact. Another negative side effect of this fund is that the mafia is investing in offshore wind farms.
Like the Marshall Plan, it has some effect. It would be shocking to see that it has no effect at all. But it has no positive effect on the economy. The structural funds are no replacement for good policy. Like less regulation, lower taxation and reducing red tape.
A new study shows that the effect of this European subsidy is even worse. The corruption is increasing thanks to the contribution of the European Union.
That the corruption is increasing should be no surprise. From Belgium, they send large sums of money to southern Italy. To areas without any governance or anyone have an idea on how to spend the money. Next, to this are organized criminal organizations using the different method to get what they like. Saying no is a bit harder when there is a gun to your head.
However, this does not mean that we should not hold anyone accountable. A good method would be to simply hold all government employees personal accountable. Just say that if they blow the money they are personally accountable. It will be considered a tax debt. So the tax agency will make the government employees homeless. Just as they do with the people financing the bureaucratic organizations.
With this, we have a prime example why we should make drastic cuts in the cohesion budget of the European Union. It redistributes money from the taxpayers of the rich countries to criminal organizations in the poorer parts of Europe.