Twenty-five countries of the European Union signed on Friday at a summit in Brussels the new Treaty establishing more fiscal discipline in Europe to learn from the debt crisis which shook the euro area.
"This is an important step to strengthen confidence in our economic and monetary union," said the president of the European Union, Herman Van Rompuy, during a signing ceremony at a summit in Brussels .
The pact provides for the establishment of "Golden Rules budget" on the balance of public accounts and automatic sanctions against countries that exceed the limit of 3% of GDP for public deficits yearly. These rules should preferably be in the Constitution State, but if a statute will suffice.
"I think this is a strong signal that we draw lessons from the crisis, we understand the signals" sent by the financial markets "and we want a future with a politically united Europe", welcomed German Chancellor Angela Merkel.
This new treaty was demanded by Berlin in exchange for its continued financial solidarity to fragile countries of the euro area. It was signed by only 25 of the 27 members of the European Union, the United Kingdom and the Czech Republic have declined.
Ireland reserved
Besides the introduction of the golden rules, the Treaty oversees the functioning of the euro area with the holding of two summits bringing together the 17 EU leaders, led by Herman Van Rompuy.
Countries that are not yet using the euro may be invited at least once a year when issues of concern to be addressed. The fiscal pact must now be ratified by at least 12 signatory states before they can begin to take effect.
"This is an important step to strengthen confidence in our economic and monetary union," said the president of the European Union, Herman Van Rompuy, during a signing ceremony at a summit in Brussels .
The pact provides for the establishment of "Golden Rules budget" on the balance of public accounts and automatic sanctions against countries that exceed the limit of 3% of GDP for public deficits yearly. These rules should preferably be in the Constitution State, but if a statute will suffice.
"I think this is a strong signal that we draw lessons from the crisis, we understand the signals" sent by the financial markets "and we want a future with a politically united Europe", welcomed German Chancellor Angela Merkel.
This new treaty was demanded by Berlin in exchange for its continued financial solidarity to fragile countries of the euro area. It was signed by only 25 of the 27 members of the European Union, the United Kingdom and the Czech Republic have declined.
Ireland reserved
Besides the introduction of the golden rules, the Treaty oversees the functioning of the euro area with the holding of two summits bringing together the 17 EU leaders, led by Herman Van Rompuy.
Countries that are not yet using the euro may be invited at least once a year when issues of concern to be addressed. The fiscal pact must now be ratified by at least 12 signatory states before they can begin to take effect.
0 comments:
Post a Comment