December 11, 2011
Signatories to the deal struck by European Union leaders on Friday to reform the eurozone will be praying that markets this week give their latest plan a warmer reception than that meted out to similar accords in recent months.
Previous summits have prompted ever briefer bursts of investor optimism followed by renewed gloom as the contents of the deals were unpicked and found wanting.
Assessing Friday’s deal, which includes semi-automatic sanctions to enforce budget discipline on eurozone governments, is complicated by its unorthodox structure.
This will not be a conventional EU agreement enforced by the bloc’s time-tested institutions. Britain’s rejection of treaty change forced leaders to improvise an “intergovernmental” system which may or may not be able to make use of EU bodies such as the European Commission, with its vast civil service, or the European Court of Justice, its judicial arm.
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