EU leaders fail to agree treaty changes

Discussion in 'Wall St. News' started by THE-BEAKER, Dec 9, 2011.

  1. goodbye europe

    Leaders of the European Union’s 27 countries failed to agree to change the EU’s treaties in order to impose tighter fiscal rules on the eurozone and instead chose to create a new intergovernmental treaty which will probably have less teeth and be negotiated only among 23 members.

    Despite the division – which will leave Britain out of the new pact, with the Czech Republic, Hungary and Sweden still weighing participation – Mario Draghi, the European Central Bank president, signalled his approval, a key vote of confidence that could allow the ECB to move more aggressively in eurozone bond markets.

    “It’s going to be the basis for a good fiscal compact and more discipline in economic policy in the euro area members,” Mr Draghi said after nearly 10 hours of meetings that finally broke up at 5am local time.

    Still, without agreement among all 27 countries, it remained unclear how the new fiscal rules the summit leaders promised to follow would be enforced. EU institutions – most importantly, the European Commission, which oversees and passes judgment on such rules in Brussels – legally cannot have a formal role in any agreement outside the EU treaties.