An EU treaty change is necessary but hazardous

Commentary feature in which author says 'on the specific question of the need for a change in the European Union treaties to create a permanent crisis resolution mechanism, German Chancellor Angela Merkel is indeed right. The current Lisbon treaty is simply inadequate to deal with the legal and political complexities of an institutional crisis mechanism. Such an institution is needed to replace the European Financial Stability Facility when it expires in 2013'.

However, he concludes 'I am not sure the wider ramifications are yet fully understood by the politicians who advocate such action, and certainly not by investors. As this becomes clearer, the chances of an agreement, let alone ratification, may diminish'.

ESO: Background information: Merkel’s sacrifices secure fragile triumph http://www.europeansources.info/record/merkels-sacrifices-secure-fragile-triumph/

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