Congress Should Rescind $108 Billion Contribution to IMF
Being Used for $1.3 Trillion EU Bailout Fund
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Washington, D.C. – Rep. Cathy McMorris Rodgers (R-WA) announced today that she has sent a letter with 22 other Members of Congress to the appropriations megabus conferees declaring that to save taxpayers’ money, Congress should rescind $108 billion in borrowing authority and increased quota contributions to the International Monetary Fund (IMF) that is being used to bail out European governments. Americans for Prosperity and 19 other conservative organizations sent their own letter to Congress in support of the measure. Rep. McMorris Rodgers is the author of H.R. 2313, which would stop U.S. participation through the IMF in the European bailouts.
“As the European financial crisis continues to unfold, the IMF continues to spend hundreds of billions of dollars bailing out members of the European Union,” said Rep. McMorris Rodgers in her letter. “What’s more disturbing is that over the last several days, the Administration has made clear its intent to continue supporting these bailout efforts…The time for wasteful spending is over – both here and abroad. The United States cannot continue this wasteful practice.”
"Hardworking American taxpayers should not be forced to cover the costs of reckless government spending policies in countries like Greece and Italy," said the coalitions in their letter. "It is unconscionable to force middle-class Americans to pay for European bureaucrats to retire in their fifties with full pensions and benefits. The problems in Europe are for Europe to address without forcing American taxpayers to pick up the tab." To read their letter, click here
In 2009, Congress approved the $108 billion increase in IMF contributions at the request of President Obama and over the objection of nearly all House Republicans.
Rep. McMorris Rodgers was the first Member of Congress to publicly oppose U.S. participation in the European bailouts. The size of the European Union/IMF bailout fund is now $1.3 trillion.
A full compilation of the Congresswoman’s work on this issue can be found here.
A copy of her letter is below.
December 9, 2011
As you consider the funding issues for FY2012, we are writing to ensure that provisions of H.R. 2313, a bill that rescinds the $108 billion in increased quota contributions and borrowing authority to the International Monetary Fund (IMF), are included in your final appropriations package.
As the European financial crisis continues to unfold, the IMF continues to spend hundreds of billions of dollars bailing out members of the European Union. As the largest contributor to the IMF, the United States and the American taxpayer are condoning the practice of prolifigate spending undertaken by members of the European Union with bailout packages. Bailout packages have been made available to European Union members that don’t even meet their own economic requirements for membership, such as Greece that maintains a reported debt to GDP ratio of 140 percent and Italy with a reported debt to GDP ratio of 120 percent, and have provided little to no guarantee that any fiscal reform will be enforced. What’s more disturbing is that over the last several days, the Administration has made clear its intent to continue supporting these bailout efforts.
Earlier this summer, the House State, Foreign Operations, and Related Agencies Subcommittee issued a draft report for its FY 2012 State, Foreign Operation, and Related Agencies appropriations bill, which included language “requiring all funds provided to the International Monetary Fund in the Supplemental Appropriations Act, 2009 (Public Law 111-32) be deobligated, withdrawn, and rescinded.” H.R. 2313 continues these efforts rescinding the $108 billion in increased quota and new borrowing authority.
The time for wasteful spending is over – both here and abroad. The United States cannot continue this wasteful practice. We urge you to rescind the $108 billion in enhanced quota contributions and borrowing authority that were requested by the Administration in 2009.
Rep. Cathy McMorris Rodgers