German politicians agree on EU fiscal treaty
Published: 21st Jun 2012 13:20:40
Germany's ruling coalition has reached a deal with the opposition enabling the EU's new budget treaty to be ratified by the German parliament next week.
The deal with the centre-left opposition Social Democrats (SPD) and Greens followed weeks of negotiations.
Chancellor Angela Merkel has been a key player in getting the EU to sign up to the fiscal compact, which would punish reckless accumulation of debts.
All 27 EU states apart from the UK and Czech Republic accept the pact.
It is due to take effect in January 2013. The aim is to compel eurozone countries to respect budget rules and avoid incurring debts like those undermining the euro now.
Under Thursday's deal, the German opposition also approved the European Stability Mechanism (ESM), the EU's new, permanent 500bn-euro (£404bn; $635bn) bailout fund, due to be launched next month.
Ms Merkel needs a two-thirds majority in parliament to pass such laws - that is why she had to get a deal with the opposition.
Germany will account for 27% of contributions to the ESM, paying out 21.7bn euros in cash and providing guarantees worth a further 168.3bn euros.
The far-left Linke party says it will challenge the pact in the German Constitutional Court, which has already told Ms Merkel to give parliament a bigger say on EU bailout issues.
Under the deal, the SPD got a commitment from the government to push for a European financial transaction tax - something that the UK government staunchly opposes.
SPD parliamentary leader Frank-Walter Steinmeier said that if agreement on such a tax proved impossible with all 27 EU states, then "we will form a 'coalition of the willing' of at least nine states".
Under the EU "enhanced co-operation" rule a minimum of nine countries can forge ahead with a policy even if it is not backed by all 27.
At 14:04:51 in Northern IrelandA private island in Lough Erne, County Fermanagh, has been put up for sale.
At 14:03:32 in SportWarwick racecourse is to abandon Flat racing and stage just National Hunt action from 2015.
At 13:55:44 in SportNorthern Ireland's Katie Kirk is through to the Commonwealth Games 800m semi-finals after an impressive run in Wednesday's heats at Hampden Park.
At 13:54:51 in SportDai Greene says he is unlikely to compete in the European Championships after failing to defend his Commonwealth Games 400m hurdles crown.
At 13:53:40 in SportReport to follow at end of match.
At 13:51:00 in EnglandA man has been charged with attempted murder after the shooting of two men in Oldham.
At 13:46:09 in EnglandA 12-year-old cyclist has died after a collision with a vehicle in a Leicestershire village, police said.
At 13:45:22 in EnglandA former policeman is to be charged with murdering a man who was shot dead after a car was stopped by officers in north London nine years ago.
At 13:43:14 in HeadlinesAn additional £3m in UK aid is to be made available to help the humanitarian situation in Gaza, Prime Minister David Cameron has announced.
At 13:43:10 in BusinessThe US economy grew at an annual rate of 4% during the April to June period, latest figures released by the US Department of Commerce have shown.
Harvard CitationBBC News, 2012. German politicians agree on EU fiscal treaty [Online] (Updated 21st Jun 2012)
Available at: http://www.ukwirednews.com/news/1436102/German-politicians-agree-on-EU-fiscal-treaty [Accessed 30th Jul 2014]
News In Other Categories
The number of people in England diagnosed with dementia has risen by 62% over seven years.
The US economy grew at an annual rate of 4% during the April to June period, latest figures released by the US Department of Commerce have shown.
A private island in Lough Erne, County Fermanagh, has been put up for sale.
The streaming video service Netflix has agreed to pay US telecoms giant AT&T to ensure its content is delivered to users smoothly.
Lessons need to be learned from the case of a man who killed his wife and two-year-old son at their Gwynedd home, an official review has found.
Rolf Harris's sex offences sentence will not be referred to the Court of Appeal, despite 150 complaints over its "leniency", the attorney general's office has said.