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A very big difference is that EU convergence funds aren't debt you need to repay later - while those Chinese investments are. Those countries are getting into d
by danmaz74 9y ago
A very big difference is that EU convergence funds aren't debt you need to repay later - while those Chinese investments are. Those countries are getting into deep debt, sometimes to build things they don't need.
- mamon 9y agoThere's a catch with convergence funds: EU never pays 100% of the bill. Average is closer to 50%, I think, so it is enough to tempt politicians into unnecessary investments, and not enough to be completely harmless for local community budget (there are cities in Poland with debt to yearly income ratio of 80-90 %).
- danmaz74 9y agoTheoretically, the not-100% rule is meant exactly so that the receiving state won't spend the money in completely wasteful projects. Unfortunately, this isn't a full assurance against the long term stupidity/short term greed of local politicians and voters alike - this happened in Southern Italy too, and surely in many other places.