The international treaty is the result of a more agile decision and should be adopted by March. But the new framework is not without difficulties. The European Commission President Jose Manuel Durao Barroso said Thursday that “the Commission will work to ensure rapid development of the new treaty to be fully compatible with Community law and preserve the role of European institutions.” In this sense, the leader of the Liberals in Parliament, Guy Verhofstadt called for respect for “the Community method and the democratic method” in drafting the new treaty, and to make “the best is to include the European Parliament in the process.” The euro and European allies have in the early hours of Thursday to Friday a quantum leap to ensure the survival of the euro. The importance of the step forward taken by the countries of the euro is approved by the support of two key institutions, the European Central Bank (ECB) and International Monetary Fund (IMF). The President of the ECB, Mario Draghi, said yesterday that the agreement “is very close to a deal of good tax.” “It is to be developed and then implemented, but it’s a great result for the euro area, very good.” The words of Dragons open the way for greater involvement of the ECB in the salvation of the euro, even though he insisted yesterday that the solution to the fiscal crisis is the responsibility of governments. Demonstrations are required at the top, which have also been made by his predecessor Jean-Claude Trichet just before starting to buy bonds of countries with problems. The IMF has also joined the support of the ECB. The IMF managing director, former French Minister Christine Lagarde said that the agreement “is a package that actually goes in the right direction.” The agreement provides a comprehensive review of the permanent rescue fund, the EU Stability (Medea) for its entry into force in July 2012, a year ahead of schedule and that its decisions may be taken by qualified majority of 85 % instead of the current requirements paralyzing unanimity. The firepower of MEDE 500 billion currently, could be increased in March 2012.
The main agreements between the 27 EU member states
The Fiscal Pact countries of the euro. Public authorities are required to have a budget in balance or in surplus. This standard must be registered in the Constitution or the equivalent legislation (‘gold standard’). Tightening of sanctions on countries that exceed the deficit of 3% or 60% of the debt.
Economic coordination in the euro area. Establish a procedure to ensure that all the major reforms of the economic policy of the states to discuss and coordinate the level of the euro area.
Strengthening of the bailout funds. The temporary European Financial Stability (EFSF) will be managed by the European Central Bank has approved a rapid mobilization of resources.
It provides for the entry into force of the permanent fund and the European Stability Mechanism (Medea) in July 2012, a year ahead of schedule. It streamlines the decision-making process of this fund, which are a qualified majority of 85% instead of the current consensus.