McMorris Rodgers Advances Case Against European Bailouts

“Taxpayers are Alarmed Over Where Obama Administration is Taking Us”

Washington, DC – Rep. Cathy McMorris Rodgers (R-WA), Vice Chair of the House Republican Conference, released the following statement after the latest developments in the European economic crisis:

“While the Obama Administration, the European Union, and the International Monetary Fund are eager to expedite a $145 billion bailout of Greece, the American people are raising questions about the cost and effectiveness of such a bailout, and they are growing increasingly alarmed about the prospect of spending tens of billions more as a part of a future European bailout.”

The United States is the largest contributor of the IMF’s budget, and therefore – if the Greek bailout plan is passed – U.S. taxpayers will be required to funnel billions of dollars to Greece. 

“At a time when America is experiencing its worst economy in 30 years and is weighed down by a $1.4 trillion deficit, U.S. taxpayers should not be forced to prop up failed socialist policies in a relatively wealthy nation such as Greece,” said Rep. McMorris Rodgers.  “Furthermore, we should not be creating a moral hazard in which larger European countries with similar problems – such as Spain, Portugal, and Italy – have a greater incentive to seek a bailout from America.”

The Dow Jones Industrial Average fell 347.80 points today and is down almost 500 points in the four days since the Greek bailout plan was unveiled.  Bond yields for Western Europe have grown considerably.  The market downturn supports the argument of bailout opponents that investors don’t have confidence that the Greek bailout deal will work, while merely setting the stage for larger future bailouts of Spain, Portugal, and Italy.

Last night, Rep. McMorris Rodgers and Rep. Mike Pence (R-IN), Chairman of the House Republican Conference, sent a letter to Vice President Biden calling on the Obama Administration to publicly oppose a potential bailout of Spain.  The Vice President is in Madrid to meet with Spain's Prime Minister José Luis Rodríguez Zapatero on economic issues.

“Should Spain request a bailout from the IMF, we urge you to make it clear that the U.S. will oppose such a bailout, and do all in its power as the IMF’s leading contributor to reject putting American money further at risk,” said Reps. McMorris Rodgers and Pence in their letter.  “The U.S. did not implement the policies that have caused Spain’s debt issues, and the U.S. taxpayer should not be put at risk to bail them out.”

On April 29, 2010, Reps. McMorris Rodgers and Pence announced they were circulating a letter to Treasury Secretary Tim Geithner calling upon the Obama Administration to oppose the $145 billion Greek bailout and any future European bailouts.

“Even at this late hour, the Obama Administration has considerable power to stop the U.S. from going down this ruinous road,” said Rep. McMorris Rodgers at Wednesday’s Republican Leadership press conference.  “It is our understanding that under current IMF rules, the United States needs only one other IMF member to oppose the bailout to defeat it.”   

On March 24, 2010, BigGovernment.com published the Congresswoman’s article, Beware of Greeks Bearing Bailout Plans.  This made Rep. McMorris Rodgers the first Member of Congress to publicly oppose U.S. taxpayer dollars for a European bailout.

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