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
No Bank Deposits Will Be Spared from Confiscation
2013 05 18
As alert Zero Hedge readers are aware, this week the EURO Politburo is busy debating the dodgy subject of deposit "bail-ins."
The following article very succinctly explains this odious mode of fractal fractional reserve end-game chicanery.
The author encourages all of you to share it with others.
NO BANK DEPOSITS WILL BE SPARED FROM CONFISCATION
By Matthias Chang Esq, futurefastforward.com (with author’s permission)
I challenge ...
Military Says No Presidential Authorization Needed To Quell “Civil Disturbances”
2013 05 17
A recent Department of Defense instruction alters the US code applying to the military’s involvement in domestic law enforcement by allowing US troops to quell “civil disturbances” domestically without any Presidential authorization, greasing the skids for a de facto military coup in America along with the wholesale abolition of Posse Comitatus.
The instruction (embedded at the end of this article), which ...
Ancient Maya Pyramid Destroyed in Belize
2013 05 17
An archaeological group says it plans to take legal action.
Despite its small size, the Caribbean country of Belize is known for a few outstanding characteristics: a spectacular barrier reef, a teeming rain forest, and extensive Maya ruins.
It now has one fewer of those ruins.
A construction company in Belize has been scooping stone out of the major pyramid at the site ...
Ginger: A Warming Herb
2013 05 17
Ginger is an Asian herb that is particularly well known to us in the West. Over time, and with trial and error, its stimulating properties and piquant flavor have been integrated into both our herbal “materia medica” and cuisine.
Brewed as an herbal tea, ginger root is particularly helpful for those people who have underactive stomachs and difficulty producing adequate amounts ...
Australian man dead for 40 minutes revived with new CPR machine
2013 05 17
In an Australian first, doctors have used a new resuscitation technique to revive three patients who were clinically dead for up to an hour.
One of the lucky survivors was Colin Fiedler, 49, who was pronounced dead at The Alfred Hospital in Melbourne, Victoria, after suffering a heart attack, The Herald Sun reported.
Doctors brought Fieldler back to life using a U.S.-made ...
|More News » |