EU nations to rein in Brussels over new budget pact
Thursday, 12 January 2012
BRUSSELS, Jan 11 (AFP): EU nations are moving towards a slightly softer budgetary pact to reinforce fiscal discipline, according to a new draft version seen by AFP, with Brussels given a lesser role in tackling breaches.
The leaders of most European Union nations agreed last month to work towards a new "fiscal compact" after governments breached the existing toothless budget rules for years, ignoring a deficit limit of 3.0 per cent of gross domestic product and debt ceiling of 60 per cent of GDP.
Britain is the only member of the 27-state European Union to have refused to join the effort to deepen integration, angering its partners.
The intergovernmental accord being drawn up notably aims to enshrine a "golden rule" of balanced budgets into national constitutions.
The pact is to be finalised this month and signed in March.
The latest version of the text was handed out to the 26 governments involved Tuesday.
It varies in one important aspect from a draft that was circulated in early January.
The leaders of most European Union nations agreed last month to work towards a new "fiscal compact" after governments breached the existing toothless budget rules for years, ignoring a deficit limit of 3.0 per cent of gross domestic product and debt ceiling of 60 per cent of GDP.
Britain is the only member of the 27-state European Union to have refused to join the effort to deepen integration, angering its partners.
The intergovernmental accord being drawn up notably aims to enshrine a "golden rule" of balanced budgets into national constitutions.
The pact is to be finalised this month and signed in March.
The latest version of the text was handed out to the 26 governments involved Tuesday.
It varies in one important aspect from a draft that was circulated in early January.