Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Mandela commemorations: Barack Obama honours Madiba's legacy

Read more

MEDIAWATCH

Trump backtracks on Russian meddling

Read more

THE DEBATE

Collusion? Backlash after Trump praises Putin in Helsinki

Read more

FOCUS

Is French oak under threat?

Read more

ENCORE!

Questions of gender take centre stage at Avignon’s theatre festival

Read more

IN THE PRESS

Street party, not a wake: Croatian football fans welcome home team

Read more

BUSINESS DAILY

UK looks to calm Brexit fears at Farnborough Airshow

Read more

EYE ON AFRICA

Nigeria: Army denies reports of missing soldiers after Boko Haram attacks

Read more

FOCUS

Despite economic blockade and corruption scandals, Qatar prepares for its 2022 World Cup

Read more

Europe

European leaders sign treaty on balanced budgets

Text by NEWS WIRES

Latest update : 2012-01-31

Every country in the European Union except for Britain and the Czech Republic signed a treaty on Monday designed to reassure investors by requiring member states to balance their national budgets or face automatic sanctions.

AFP - The president of the European Central Bank, Mario Draghi, Tuesday welcomed a European accord on tighter budgetary rules, hailing it as a movement in the path towards a fiscal union.

The pact is a "first step toward a fiscal union," Draghi told reporters after EU leaders agreed on a set of rules to strengthen budgetary discipline which he said "certainly will strengthen confidence in the euro area."

He also hailed the finalising of the permanent 500-billion-euro ($657-billion) bailout fund, the European Stability Mechanism (ESM), which aims to prevent the debt crisis spreading throughout the 17-nation eurozone on entry into the market come July.

Some EU leaders hope that tougher rules will encourage the fiscally conservative ECB to take more decisive action to ease the crisis.

The pact forces the 25 member states that have signed up to it to enshrine in their national law a so-called "golden rule" to balance budgets or face automatic sanctions.

Only Britain and the Czech Republic have refused to put their names to the fiscal pact.
 

Date created : 2012-01-30

  • EUROZONE

    Eurozone crisis deepens after rating downgrades

    Read more

  • DAVOS FORUM

    IMF, EU push Greece to make more reforms

    Read more

  • EUROPEAN UNION

    EU leaders eye balanced budget pact in Brussels

    Read more

COMMENT(S)