Eurozone crisis: New EU treaty 'may not be needed'

http://www.bbc.co.uk/news/world-europe-16062378

EU Council President Herman Van Rompuy is saying that there is a possible fast-track "fiscal compact" that does not need ratification by parliaments or national referendums. A protocol will have to amended which requires a national consensus but does not require any major changes to EU treaties. These provisions were found in the interim report:

Each eurozone member's budget deficit should be below 3% of GDP and national debt under 60%

A "golden rule" should be enshrined into national legislation to guarantee a balanced budget in the medium-term

The eurozone bailout fund to be given a banking licence to borrow directly from the European Central Bank

The European Commission to have the power to impose austerity measures automatically on countries which require bailouts

Great Britain still opts out unless safeguards are put up to protect financial interests of London and and for British role in the European single market. Greek debt has been written down by half and many think that the Portuguese, Irish, Spanish, and Italian governments will soon follow. If Greece, Italy and other default on their debts, German and French lenders will lose big. The dilemma is growing very large and needs to be taken care of quick. Heck the European public is far from understanding the issues.

Greece has been living outside its means before it joined the euro. Once it did spending soared and more and more debt piled up. The crisis just seems to go on and for serious action to be taken ratification will have to be made.

Sarvateet Patel

Benthuysen - 11am Friday