EU Signs New Fiscal Treaty

It's an attempt to prevent euro countries from running up huge debts
By Newser Editors and Wire Services
Posted Mar 2, 2012 3:14 AM CST
EU Signs New Fiscal Treaty
French President Nicolas Sarkozy arrives for a round table meeting at an EU Summit in Brussels on Friday, March 2, 2012.   (Remy de la Mauviniere)

(Newser) – The leaders of 25 European states today signed a new treaty designed to prevent the 17 euro countries from living beyond their means and prevent a repeat of the currency union's crippling debt crisis. The leaders hope the accord, known as the fiscal compact, will also lead the way toward closer political and economic integration in the eurozone. Only Britain and the Czech Republic decided not to sign the agreement, triggering some concern over a rift in the 27-country European Union.

story continues below

The fact that not all EU states backed the new rules forced the others to set them up in a separate treaty, rather than integrating them into EU law. That prevents its signatories from taking advantage of some of the bloc's established institutions, such as the European Commission, the EU's executive that usually oversees the implementation of EU law. All participating governments must now ratify the treaty at home—a process that may prove difficult in some places. The treaty can come into force once at least 12 euro countries have ratified it. (Read more European Union stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.