Twenty five EU leaders sign German-model fiscal treaty

Honor Mahony
EU Observer

Germany’s vision of an EU of fiscally prudent states held in check by tight budgetary laws and the threat of legal action came a step closer on Friday (2 March) when 25 leaders signed a new treaty on fiscal discipline.

In a low-key signing ceremony, all countries except the UK and the Czech Republic, became signatories to the 16-article pact, which, after going under a variety of monikers, has now been lumbered with the title “Treaty on stability, co-ordination and governance in the economic and monetary union.”

“Its effects will be deep and long-lasting.” said EU council president Herman Van Rompuy ahead of the signing, adding that it will help prevent a “repetition of the debt crisis.”

In line with Berlin’s wishes, the text includes an article obliging those that ratify it to enshrine a balanced budget into national law, while a country breaching the budget deficit rules will be subject to intense surveillance, with curbed discretionary spending powers, and obliged to carry out an agreed list of structural reforms.

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