Eurozone crisis: New EU treaty ’may not be needed’
2011 12 07
Success boys. More control achieved!
Tougher rules to tackle the eurozone debt crisis can be achieved without changing EU treaties, European Council President Herman Van Rompuy says.
In a leaked report for a crucial EU summit beginning on Thursday, he offers a fast-track "fiscal compact" that does not need lengthy ratification by parliaments or national referendums.
Germany and France are pushing for a new EU treaty by March, saying stricter rules should be enshrined there.
The US has backed their plans.
But Treasury Secretary Timothy Geithner said the US Federal Reserve had no plans to give money to the International Monetary Fund to boost the eurozone's bailout fund.
Mr Geithner, who is meeting all major eurozone leaders during his three-day visit of Europe, stressed that more action was needed to boost economic growth in Europe, alongside the longer-term reforms. He meets President Nicolas Sarkozy in Paris on Wednesday.
Five crucial days for the euro
- Monday: Nicolas Sarkozy and Angela Merkel propose tighter eurozone controls
Italian PM Mario Monti seeks parliamentary approval for his austerity package
Tuesday: US Treasury Secretary Timothy Geithner arrives in Germany before travelling to France and Italy for talks with euro leaders
Wednesday: The talking continues as many EU leaders gather in Marseille for a European People's Party congress
Thursday: ECB's monthly policy meeting could produce new measures
Thursday and Friday: Crucial EU summit in Brussels to consider Sarkozy-Merkel plan
Mr Van Rompuy will be chairing the two-day summit, and all the signs are that it could be a bruising affair, the BBC's European affairs correspondent Chris Morris reports.
In the interim report, details of which have been obtained by the media, Mr Van Rompuy proposes a plan aimed at agreeing a "new fiscal compact" without holding a referendum or ratification by the parliaments of each eurozone country.
The draft says that tougher fiscal reforms can be adopted simply by amending a protocol - a procedure that needs national consensus but does not require substantial changes to the EU treaties.
This, Mr Van Rompuy argues, would speed up the implementation of reforms and remove any potential political complications.
The interim report contains the following key provisions:
- Each eurozone member's budget deficit should be below 3% of GDP and national debt under 60%
- A "golden rule" should be enshrined into national legislation to guarantee a balanced budget in the medium-term
- The eurozone bailout fund to be given a banking licence to borrow directly from the European Central Bank
- The European Commission to have the power to impose austerity measures automatically on countries which require bailouts
However, Mr Van Rompuy acknowledges that more far-reaching reforms would eventually require a change in EU treaties.
Some of the report's proposals tally with the Franco-German plan how to tackle the crisis, but some do not.
Paris and Berlin appear to be pushing through more radical measures, our correspondent says, and if all 27 EU members cannot agree, then they are prepared to work towards a new treaty involving the eurozone bloc and any other country that wants to join.
Such a move could leave Britain - a non-eurozone EU member - feeling more isolated, he says.
UK Prime Minister David Cameron has said he will not sign a new treaty without safeguards for to protect financial interests of the City of London and Britain's role in the European single market.
But such is the depth of the crisis surrounding the eurozone that the main focus is not on the EU solidarity but on restoring market confidence in whatever way proves possible, our correspondent says.
Earlier this week, Standard & Poor's put all eurozone nations on credit watch "with negative implications".
The ratings agency said the decision was prompted "by our belief that systemic stresses in the eurozone have risen in recent weeks to the extent that they now put downward pressure on the credit standing of the eurozone as a whole".
Latest News from our Front Page
Equinox: Homicide In Kennewick
2014 09 19
Description text from Youtube: One of the most important and controversial archaeological finds ever made, Kennewick Man’s remains were dated to around 7000 BC. Found on the banks of the Colorado River, his facial structure, however, was unanimously reported not to be a Native American by all the scholars who have taken a close look at the remains... The implication ...
The Israeli exception to US foreign policy advocating gay rights
2014 09 19
From an op-ed by James Bamford in the NYTimes on his conversations with Edward Snowden (Israel’s NSA Scandal):
Among his most shocking discoveries, he told me, was the fact that the N.S.A. was routinely passing along the private communications of Americans to a large and very secretive Israeli military organization known as Unit 8200. This transfer of intercepts, he said, included ...
Russia to ban Bitcoin by next spring
2014 09 19
RT, an English-language news outlet in Russia, reports that a top official with the Russian government has announced that a law will be passed banning Bitcoin’s exchange into real money by next spring because of Bitcoin’s use by criminals and terrorists.
Deputy Finance Minister Aleksey Moiseev said to journalists in Moscow:
“People can play with their chips, and they can call them ...
Ingraham to Zuckerberg: Time for Open Borders at Your Mansion
2014 09 19
Talk radio host Laura Ingraham re-iterated her challenge to debate Facebook co-founder and CEO Mark Zuckerberg and criticized him for securing his property while demanding the US allow illegal immigrants to remain in the country on Monday.
“In the end, borders work for these guys. Right, I would not want to be on [Facebook board member] Marc Andreesen’s household staff if ...
MasterCard tests Orwellian national ID card on Nigeria
2014 09 19
The march toward enslaving the world’s population by a handful of globalist statists and corporations continues, with the latest chapter unfolding, of all places, in Nigeria, compliments of MasterCard.
According to the website GovtSlaves.info, the credit card giant is rolling out a card in Africa’s most populous country that has the ability to retain all personal, health insurance, tax payment and ...
|More News » |