Sen. Jim DeMint, R-S.C., and House Republican Conference chairman Mike Pence of Indiana are among House Republicans, who want European Union countries to pass a credit check before the U.S. helps bail them out with them loan guarantees, according to a report in politico.com.
The credit check involves the distressed countries meeting a specific ratio between the receiving nation’s debt and gross domestic product.
Pence argues the loan guarantees to Greece, for example, could leave American taxpayers holding an IOU for $50 billion.
"The American people don’t want to see the European Union fail," Pence says. "But all this European bailout that’s been proposed, all this Greek bailout that's been implemented will do is postpone the hard decisions that the people of Greece and the people of Portugal and Spain and Italy need to make. The real answer for the fiscal crisis in Europe is the kind of fiscal discipline, tough choices and reform that truly would restore the European economies and restore world markets."
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