Europe approves its fiscal pact

The countries of the European Union (EU), with the exception of Britain and Czech Republic, agreed yesterday Monday the Covenant of fiscal discipline for Europe at a Summit marked by divisions on the German plan to submit to Greece to the tutelage of Brussels.

"Twenty-five of the 27 countries of the European Union (EU) adopted the fiscal pact," announced the President of the European Council, Herman Van Rompuy.

Great Britain, and Czech Republic remained outside the Treaty that responds to a need for fiscal discipline of the German Chancellor, Angela Merkel, in exchange for greater solidarity finance.

From now, Germany could accept the increase in the resources of the European financial stability (EFSF) Fund to help countries in difficulty, announced the Italian representative Mario Monti. "We feel an evolution in the position of Germany", declared to the press at the end of the Summit

The MEDE
the Treaty to the u000aEuropean leaders adopted on Monday will make it possible to launch in July the European stability mechanism (COMPRISES) to support the threatened economies of the euro area, such as Italy or Spain, although there are still divisions on the funds that should be equipped with.

To counteract the austerity, European leaders debated in addition formulas to boost growth and employment. However, Greece, epicentre of the debt crisis, garnered agenda.

Especially after the proposal of Germany equip the EU with greater decision-making power on the management of the Greek budget.

"Seems to me reasonable to put a country under tutelage", said French President Nicolas Sarkozy, in a press conference after the Summit.

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