The Euro Crisis: The Fiscal Treaty – An Initial Analysis

EU Member States will expected to sign a new treaty on the margins of the European Council meeting in early 2012. The treaty has been described by its proponents as the first foundation stone of a fiscal union, while its opponents have lambasted the agreement as a meaningless distraction from resolving the euro area’s debt crisis.

This paper analyses the content in the fourth leaked draft of the ‘Treaty on Stability, Coordination and Governance in the Economic and Monetary Union’ – the European Union’s new fiscal treaty – and examines its impact on the current debt crisis.

ESO: Background information: Eurozone countries sign-up to closer ties http://www.europeansources.info/record/eurozone-countries-sign-up-to-closer-ties/

IIEA: The Euro Crisis: The 'Fiscal Compact' and Fiscal Policy The Euro Crisis: The 'Fiscal Compact' and Fiscal Policy, January 2012 http://www.iiea.com/publications/the-euro-crisis-the-fiscal-compact-and-fiscal-policy

ESO: Background information: Irish want referendum on fiscal treaty http://www.europeansources.info/record/irish-want-referendum-on-fiscal-treaty/

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