Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

EU Leaders Sign Fiscal Discipline Pact

BRUSSELS (UPI) — A treaty to curb fiscal mismanagement was signed Friday by a majority of European Union countries, officials said.

Twenty-five of the EU’s member states signed the treaty, which will now move through Europe’s capital cities to be ratified by each country’s parliament. Only Britain and the Czech Republic choose not to sign onto the agreement, which threatens economic sanctions on those who don’t comply.

The treaty underscores the depth of the financial crisis in Europe, which the United Nations in a report issued Thursday said was putting a drag on global economic growth, specifically slowing world’s manufacturing sector.

The International Monetary Fund said earlier this month that Europe was likely to fall into a mild recession this year.

In addition, debt burdens in countries like Greece, Portugal, Spain and Italy have threatened to put an enormous strain on Europe’s financial system.

Wake-up calls of that magnitude are behind the treaty that was pushed by Germany and mandates participating countries to pass balanced budget laws. Member states that fail to adhere to fiscal restraints spelled out in the treaty can be sanctioned by having restrictions placed on their discretionary spending, the EUobserver reported.

“It’s effects will be deep and long-lasting.” said EU council president Herman Van Rompuy before the signing ceremony.

The treaty will help avert a second debt crisis, he said.

But some analysts question how much clout the treaty will have. Britain not only opted out, but vetoed a full-scale treaty change.

That will make it difficult to implement, as countries that do not comply with the balanced budget rules will have to be sued by another country, which will create international tension if it is enforced.

The treaty, however, is part carrot, part stick. Only countries that have ratified the treaty will be able to make use of the Europe’s permanent international bailout funds, the EUobserver said.

The treaty goes into effect when 12 of 17 eurozone countries ratify it.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Facebook Conversations

Join the Discussion:
View Comments to “EU Leaders Sign Fiscal Discipline Pact”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.