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The Euro Zone has its Treaty (v2)

(B2) It is a real qualitative leap that the leaders of the Euro zone took yesterday in Brussels. By deciding to create an “economic and budgetary union”, they wanted to give the Euro zone the political support it lacked. But this was acquired only at the cost of a formidable complexity and… a stall. The UK is “out”. A shock !

Signed at 17 soon at 26

The 17 countries of the Euro zone have accepted the agreement. The UK refused. But he is isolated. The 9 other countries not members of the Euro zone have not said no; they will consult their parliament. Even the most reluctant like Sweden, the Czech Republic, Hungary could finally say yes, as acknowledged by Victor Orban, the Hungarian Prime Minister: "Joining the Euro is not really a choice, it is an obligation . »

A fiscal pact

A whole series of budgetary and economic measures will be put in place. The public budget will have to be “balanced” and the deficit limited to “0,5% of GDP per year”. This “golden rule” will be incorporated into each Constitution. If exceeded, an “automatic correction mechanism” will be applied. The European Court of Justice will have jurisdiction, but only to verify the correct transposition of these measures, not to correct the budget. Finally, a common economic policy, comprising various measures, will be put in place.

Blurry and complexity.

Some measures will be integrated into the current body of European legislation. Others will appear in a specific text such as the European Stability Mechanism which will enter into force in July 2012. The rest will form a new Treaty. But this remains to be written in detail. It's not win ! " Lawyers are already tearing their hair out explains a national diplomat. It will be signed in March and will then have to be ratified by each national parliament or… by referendum. Ireland has already warned of this last probability since there was a transfer of sovereignty...

Nicolas Gros-Verheyde.

(article published in Ouest-France, December 10, 2011)

(updated 18 Dec.) For an analysis of the text of the Treaty just published, read: The draft treaty Eurozone is written. Text and some comments

Nicolas Gros Verheyde

Chief editor of the B2 site. Graduated in European law from the University of Paris I Pantheon Sorbonne and listener to the 65th session of the IHEDN (Institut des Hautes Etudes de la Défense Nationale. Journalist since 1989, founded B2 - Bruxelles2 in 2008. EU/NATO correspondent in Brussels for Sud-Ouest (previously West-France and France-Soir).

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