EU Comm Says Has No Enforcement Role In Fiscal Compact Treaty

BRUSSELS (MNI) – The European Commission will not be able to sue at
the EU court member countries of the European Union that sign up to the
new fiscal compact treaty because the Commission’s role is limited to
the current EU treaty, a Commission official explained on Wednesday.

Under the draft fiscal compact treaty prepared by the European
Council last week, signatories would be able to take each other to the
European Court of Justice to ensure that the agreement’s fiscal
discipline rules are enforced.

However, the Commission, which sues EU member states that fail to
comply with EU laws at the Luxembourg-based court, will not have that
prerogative under the new treaty because the Commission cannot act
outside the EU treaty, a spokesman said.

Leaders of the 17 countries that use the euro agreed on 9 December
to enshrine balanced budget and fiscal discipline rules in their
constitutions via an international agreement between themselves after
the UK vetoed attempts to add the rules to the existing EU treaty.

The other members of the EU that don’t use the euro but are obliged
one day to embrace the common currency indicated that they may also sign
up to the treaty after consulting with their national parliaments.

European governments are now studying the draft treaty, with the UK
looking on as an observer, with the aim of signing it in March.

–Brussels bureau: +324-9522-8374; pkoh@marketnews.com

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