Wednesday, December 7, 2011

Will this be a new treaty?

City AM reports with some shock in its tone that
MOST countries will not get a vote on tighter fiscal integration, allowing Germany to force through new financial controls across the Eurozone, European Council president Herman Van Rompuy said yesterday in a report sent to EU leaders ahead of tomorrow’s two-day summit.
I have already seen comments that this is a denial of democracy. Actually it is not, given that the EU structures are not exactly democratic. This may well be a denial by the EU of its own rules, which would not be the first time. (Here, here and here)

The question is will this be a new treaty or merely the old one tinkered with. Rumpy-Pumpy says it will not be a new treaty but tightening up of rules, which were supposed to be tight enough already (no, he didn't say that last bit).
By changing only protocol 12 of the EU treaty, which relates to “excessive deficits,” Van Rompuy believes the proposed changes “do not require ratification at national level”.

This means “rapid and significant changes” can be introduced to stop any repeat of the current debt crisis.

“It is crucial to enhance the credibility of our budgetary rules and to ensure compliance,” said Van Rompuy, which will help “restore market confidence in the Eurozone.”

The report also outlined plans to keep national debts below 60 per cent of GDP, and followed German plans for a “golden rule” on balanced budgets.
Well, now, will our valiant Prime Minister go along with that?

3 comments:

  1. "Well, now, will our valiant Prime Minister go along with that?" And will the markets? Me thinks not.

    "By changing only protocol 12 of the EU treaty" Seems like taking a nut to crack a sledgehammer.

    ReplyDelete
  2. WitteringsfromWitneyDecember 7, 2011 at 4:36 PM

    Helen, If they change Protocol 12, they change the treaty. Richard and I have both posted on this......

    ReplyDelete
  3. Oh I know, I know, WfW. But we need to produce what they say as well as our own rants. And the accusation that they are breaking their own rules is quite a good one to brandish in front of the doubting populace.

    No, Antisthenes, I do not think the markets will go along but these people are beyond the power of reason.

    ReplyDelete