Monday, December 19, 2011

More Problems than Answers

The Pitfalls of the Merkozy Fiscal Pact

Last week's European Union summit has created more problems than it has solved. By agreeing to enter into a fiscal compact that would tighten control over national budgets and enact automatic sanctions against deficit offenders, the heads of state and government who make up the European Council have left the solid ground of EU law and entered into uncharted legal territory.

With British Prime Minister David Cameron unwilling to join the other EU member states in modifying the Lisbon Treaty to allow Brussels greater influence over member states' budgets, the rest of the summit participants agreed to enter into a new treaty entirely, one without the United Kingdom. The negotiations over this "17-plus treaty," which will include all countries within the euro zone as well as other willing EU members, are supposed to be completed by March...

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