Defiant UK spurns new EU treaty
Source: Agencies |
December 10, 2011, Saturday
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Print Edition
Print Edition
THE European Union yesterday said 26 of its 27 member countries are open to joining a new treaty tying their finances together to solve the euro crisis. Only Britain remains opposed, creating a deep rift in the union.
In marathon overnight talks, the 17 countries that use the euro gradually persuaded nearly all the others to consider joining the new treaty they would create. Some of those countries may face parliamentary opposition to the treaty, which would allow for unprecedented oversight of national budgets.
"Except for one, all are considering participation," EU President Herman Van Rompuy told reporters after the summit ended in Brussels, Belgium. "I'm optimistic because I know it is going to be very close to 27."
A document released near the end of a high-stakes EU summit yesterday said the leaders of nine of the 10 EU countries that don't use the euro "indicated the possibility to take part in this process after consulting their parliaments where appropriate."
German Chancellor Angela Merkel said after the summit: "This is the breakthrough to the stability union."
In drafting a new treaty, the countries hope to help European nations struggling with giant debts over the long term, and in that sense there were early indications of success. Such an agreement is considered necessary before the European Central Bank and other institutions commit more money to lowering the borrowing costs of heavily indebted countries such as Italy and Spain.
"It's a very good outcome for the euro area, very good," ECB President Mario Draghi said in Brussels. "It is going to be the basis for much more disciplined economic policy for euro-area members."
Stocks and the euro climbed on news of the new treaty, even though it offers only a long-term solution and no immediate salve for a crisis that started in Greece, then plunged the whole eurozone into crisis and now threatens the global financial system.
While the deal could help save the euro, the political implications of the rift could be enormous. Germany and France had hoped to persuade all 27 EU countries to agree to change the treaty that governs their union. But Britain, which doesn't use the euro, firmly said no. Britain's leaders argued the treaty would threaten their national sovereignty and damage London's financial service industry.
In marathon overnight talks, the 17 countries that use the euro gradually persuaded nearly all the others to consider joining the new treaty they would create. Some of those countries may face parliamentary opposition to the treaty, which would allow for unprecedented oversight of national budgets.
"Except for one, all are considering participation," EU President Herman Van Rompuy told reporters after the summit ended in Brussels, Belgium. "I'm optimistic because I know it is going to be very close to 27."
A document released near the end of a high-stakes EU summit yesterday said the leaders of nine of the 10 EU countries that don't use the euro "indicated the possibility to take part in this process after consulting their parliaments where appropriate."
German Chancellor Angela Merkel said after the summit: "This is the breakthrough to the stability union."
In drafting a new treaty, the countries hope to help European nations struggling with giant debts over the long term, and in that sense there were early indications of success. Such an agreement is considered necessary before the European Central Bank and other institutions commit more money to lowering the borrowing costs of heavily indebted countries such as Italy and Spain.
"It's a very good outcome for the euro area, very good," ECB President Mario Draghi said in Brussels. "It is going to be the basis for much more disciplined economic policy for euro-area members."
Stocks and the euro climbed on news of the new treaty, even though it offers only a long-term solution and no immediate salve for a crisis that started in Greece, then plunged the whole eurozone into crisis and now threatens the global financial system.
While the deal could help save the euro, the political implications of the rift could be enormous. Germany and France had hoped to persuade all 27 EU countries to agree to change the treaty that governs their union. But Britain, which doesn't use the euro, firmly said no. Britain's leaders argued the treaty would threaten their national sovereignty and damage London's financial service industry.
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