December 5, 2011
France and Germany said on Monday they had reached a “comprehensive” agreement on a new set of fiscal rules for governing the beleaguered eurozone which they will ask a critical European Union summit in Brussels to approve on Friday.
Their proposals effectively amount to the “fiscal compact” demanded by Mario Draghi, president of the European Central Bank, to enforce budgetary discipline in the debt-saddled single currency region. Such a deal is seen as an essential condition for aggressive action by the ECB to stop the recent crippling flight from eurozone sovereign debt.
President Nicolas Sarkozy said he and Angela Merkel, the German chancellor, had agreed a set of measures which included changes in the EU’s governing statutes to enforce balanced budgets.
In a key move, Ms Merkel signed up to a commitment that private sector bondholders would not in future be asked to bear some of the losses in sovereign debt restructurings, as she insisted on earlier this year in the case of Greece.
More
No comments:
Post a Comment