EU-Summit can Create Fund for Eurozone and Arab States

Mar 10, 2011, 13:01 ET from Stichting Urban Organism 2009

THE HAGUE, March 10, 2011 /PRNewswire/ --

- Converting 500 Euro Bills into Bonds Yields EUR 285 bln. for TCS Fund

During the extra EU summit in Brussels on March 11, the seventeen Eurozone states can create an aid fund both for assisting ailing countries like Ireland, Greece, Portugal and Spain and for helping with the economic reconstruction of Arab states like Tunisia, Egypt and soon Libya. Recalling all 570 million circulating bills of EUR500 and converting them into European state bonds will create an emergency fund of EUR 285 billion: the TCS Fund (The Children's Sustainability Fund).

During the March 22 summit, the Euro-nations will discuss, inter alia, the euro emergency fund and tougher sanctions for members states that violate the budget rules. Decisions have to be taken at the end of March.

The man who spawned the TCS Fund, Jos Hendriks, says Europe can create a huge fund with a simple political decision, without taxpayers in the member states having to foot the bill. "The 500 euro bills are not used as tender, but are often stored by corrupt regimes. TV footage showed how former president Ben Ali of Tunisia kept millions of 500 euro bills in his safe. The TCS Fund puts an end to the use of these bills as criminal money" he says.

His idea is as simple as it is feasible. The national central banks of Europe should recall the 500 euro bills and convert them into bonds. They can then loan the money against reasonable interest rates. Not just to southern European countries. Hendriks: "The Arab countries that are now witnessing revolutions have a majority of young people who are looking for perspectives and economic progress. A Marshall Plan is needed for these countries, which can be financed from the TCS Fund."

He sees a leading role for the Netherlands and the ABN AMRO bank in managing the fund. His idea to recall 500 euro bills was born when he investigated the take-over of ABN AMRO by the Royal Bank of Scotland, Fortis and Santander and questioned the origins of the take-over sum. Hendriks: "By making money with the TCS Fund, ABN AMRO can repay its 30 billion debt to the Dutch taxpayer."

Hendriks says his plan is getting increasing support. He has raised and discussed his idea with various politicians. "I have talked about this with Prime Minister Mark Rutte and it has been proposed to Finance Minister Jan Kees de Jager en European president Herman Van Rompuy. Actually, you should see it as a backing for Mark Rutte during the upcoming EU summit," says Hendriks.

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SOURCE Stichting Urban Organism 2009