Idaho Congressman Mike Simpson has cosponsored legislation to ensure that American taxpayers are not put at risk by international efforts to bail out Greece and other European Union nations.  H.R. 5299, the European Bailout Protection Act, would halt U.S. participation in the roughly $950 billion package recently announced by the EU and the International Monetary Fund (IMF) to assist nations facing financial crises. 

“There is no doubt that Greece’s serious debt crisis could have ramifications here at home, but I am deeply concerned about the long-term implications that bailing out other countries have for both the global economy and the U.S. economy,” Simpson said.  “Putting other nations at risk because one country overspent and racked up enormous amounts of debt is a dangerous precedent to set.”

In spite of the fact that the Treaty on European Union requires EU member states to stay below a government budget deficit ceiling of 3% of GDP, Greece currently has a budget deficit of over 13%.  In response to Greece’s financial crisis, the EU and the IMF, to which the United States is the largest global contributor, have taken unprecedented steps to bail out heavily indebted European governments.  H.R. 5299 would prohibit U.S. funding for efforts by the IMF to provide finance to any EU nation until all EU nations are in compliance with their own debt ratio requirements.

“Fiscal restraint is necessary for a healthy economy, and the international community should encourage responsibility, not reward reckless behavior,” said Simpson.  “Greece’s situation should sound an ominous warning about our own out-of-control federal deficit and the impact that it has on our nation’s economy and taxpayers, as well as future generations of Americans who will be expected to pay it down.  Getting our financial house in order is my top priority.”