Europe's Economy Teeters, Leaders Go on Holiday

But 23 nations agree to austerity measures in new accord

(NEWSER) - After strenuous negotiations, 23 of the 27 nations of Europe agreed to government spending and borrowing caps to be outlined in a new pact—but a unified treaty was blocked by Britain. Negotiations broke down largely over London's demands for future protection from financial regulations forged by France and Germany. Hungary also refused to sign the accord, and Sweden and the Czech Republic required more time to discuss the issues with their parliaments, reports the Washington Post . British Prime Minister David Cameron said ceding so much control over Britain's budget is "not in my national interest." The intergovernmental pact, with details to be hammered out in the coming months, includes all 17 nations that use the euro, and will include stiff penalties for big-spender countries and up the resources for nations in fiscal trouble. It could be ratified much more quickly by parliaments than a full EU treaty amendment, notes the New York Times. More»

Euro leaders must embrace real fiscal union before it's too late

(NEWSER) - With the survival of the eurozone at stake, European leaders are aiming to complete a plan this week that will transform the region and save the euro, reports the New York Times . Despite major differences that remain between Angela Merkel and Nicolas Sarkozy, a four-point deal is taking shape, including increased fiscal discipline for eurozone countries to be added to European treaties; an increase of the European Financial Stability Facility to two or three times its current size; more money to the IMF to increase the bailout fund; and relaxing regulations to enable the European Central Bank in the short run to continue aggressively supporting Italian and Spanish bonds. More»

Critics attack European Union's fiscal belt-tightening deal

(NEWSER) - The Czechs thought about it, and they said no. All other 27 EU member states except Britain agreed today to join a compact to impose budget discipline on fellow nations, the BBC reports. British Prime Minister David Cameron had already refused to take part, saying that ceding control of his country's budget is "not in my national interest." The Czech Republic, not yet in the euro, cited "constitutional reasons" for rejecting the treaty. More»

His EU veto could have major ramifications

(NEWSER) - David Cameron's decision to exercise Britain's veto and sit out negotiations on a new EU treaty is being seen as a momentous move, even if the ramifications aren't quite clear yet:

• New York Times : The decision "has left Britain as isolated as it has ever been in postwar Europe and effectively left out of future European decisions," write Sarah Lyall and Julia Werdigier. They add, however, that "there was widespread confusion over what this all actually means."
• Guardian : "I do not hear the sound of champagne corks or celebration among British Eurosceptics," writes Michael White. "Beware of what you wish for, is a wise saying. Who knows what happens now? But Europe, for all its follies and failings, has become a scapegoat for weaknesses that are really our own. We may be about to rediscover that awkward truth. It was why we joined in the first place."

Even body language is under scrutiny at euro summit

(NEWSER) - Britain's Daily Mail is calling it "Le Snub!": Reading much (maybe too much?) into the body language of Nicolas Sarkozy and David Cameron, it says the French president dissed the UK prime minister by blowing off Cameron's handshake at today's high-stakes European Union summit. (Britain isn't going along with the French-backed pact.) The Telegraph isn't so sure about it being a snub, noting that the men had shaken hands a bit earlier—but it's still happy to play up the video posing the question. See for yourself. More»