25 EU leaders signed the new fiscal treaty

Twenty five out of 27 EU leaders have signed a new treaty to enforce budget discipline within the bloc.

The “fiscal compact” aims to prevent the 17 eurozone countries again running up huge debts.

It must now be ratified by individual parliaments and, in the case of the Irish Republic, a referendum.

UK Prime Minister David Cameron, who with the Czechs refused to sign, said his proposals for cutting red tape and promoting business had been ignored.

But the newly re-appointed President of the European Council, Herman Van Rompuy, said British calls to boost the EU economy were being taken seriously and he had sought to re-draft the summit’s conclusions accordingly.

The fiscal compact is what emerged after David Cameron vetoed plans to change the EU treaties to enforce greater budgetary discipline back in December.

German Chancellor Angela Merkel described it as a “great leap”, a first step towards stability and political union.

These new powers may face an early test as both Spain and the Netherlands have admitted they will miss targets for reducing their deficits.

While there has been a change of emphasis at this summit, “from crisis mode to growth mode” in the words of one senior official, it will be difficult to achieve whilst tough spending cuts are being made.

In a speech at the signing ceremony, Herman van Rompuy said: “This stronger self-constraint by each and every one of you as regards debts and deficits is important in itself.

“It helps prevent a repetition of the sovereign debt crisis. It will thus also reinforce trust among member states, which is politically important as well.

“The restoration of confidence in the future of the eurozone will lead to economic growth and jobs. This is our ultimate objective.”

 

Diane A. Wade

Diane is a perfectionist. She enjoys searching the internet for the hottest events from around the world and writing an article about it. The details matter to her, so she makes sure the information is easy to read and understand. She likes traveling and history, especially ancient history. Being a very sociable person she has a blast having barbeque with family and friends.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago