Budget discipline pact signed by 25 EU states
All but 2 European Union countries signed a treaty on tighter budget discipline for the euro zone on Friday, marking a coup for Germany which pushed for the accord to try to prevent a repeat of the loose spending that led to a debt crisis.
Chancellor Angela Merkel of Germany signs the treaty on tighter fiscal discipline in Brussels Friday.
Only Britain and the Czech Republic did not sign the 'fiscal compact', under which countries in the euro zone are bound to write a 'golden rule' on balanced budgets into their national constitutions or equivalent laws, with automatic correction mechanisms if the rule is breached.
This stronger self-constraint ... as regards debts and deficits is important in itself, said Herman Van Rompuy, who, as President of the European Council, played a key role in negotiating an agreement acceptable to all signatories.
It helps prevent a repetition of the sovereign debt crisis, he said, in a speech at the signing ceremony.
Paul A. Ebeling, Jnr. Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels. www.livetradingnews.com