tHE new 'EU' AGREEMENT...
"The new eurozone treaty calls for participating governments to have balanced budgets, which is calculated as a structural deficit no greater than 0.5 per cent of gross domestic product and will require constitution amendments to include such a requirement. An unspecified "automatic correction mechanism" would punish countries which break the rules.
In addition, countries that run deficits larger than three per cent, would face sanctions.
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, said the treaty isn't in its interest.
Analyts said while the treaty proposal didn't meet everyone's expectations, it certainly represented progress.
"We have been far enough down this road to realize that one meeting isn’t going to solve everything," said Colin Cieszynski, market analyst at CMC Markets Canada."
http://www.canadianbusiness.com/article/61259--stock-markets-higher-as-european-leaders-agree-on-new-budgetary-pact
"The new eurozone treaty calls for participating governments to have balanced budgets, which is calculated as a structural deficit no greater than 0.5 per cent of gross domestic product and will require constitution amendments to include such a requirement. An unspecified "automatic correction mechanism" would punish countries which break the rules.
In addition, countries that run deficits larger than three per cent, would face sanctions.
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, said the treaty isn't in its interest.
Analyts said while the treaty proposal didn't meet everyone's expectations, it certainly represented progress.
"We have been far enough down this road to realize that one meeting isn’t going to solve everything," said Colin Cieszynski, market analyst at CMC Markets Canada."
http://www.canadianbusiness.com/article/61259--stock-markets-higher-as-european-leaders-agree-on-new-budgetary-pact