Mon, May 28, 2012, 4:12 PM EDT - U.S. Markets closed for Memorial Day

Official: EU tries for new eurozone accord

Official: EU fails to agree on treaty change with 27 states, tries instead for eurozone accord

BRUSSELS (AP) -- European Union leaders failed to get the bloc's 27 members to back a change to the EU treaty and the 17 eurozone countries are now trying to reach their own accord, an EU official said Friday.

Other non-euro countries are invited to join the new treaty, which is meant to set up much tighter rules on national fiscal policy for the 17 countries that use the euro in an attempt to solve the worsening debt crisis, the official said.

The official was speaking on condition of anonymity to discuss confidential information.

Germany and France in particular had heralded the new treaty basis as an important step to emerge from the crisis, which has already dragged Greece, Portugal and Ireland into multibillion euro bailouts, but the failure to get all 27 EU countries to agree will likely be seen as a huge setback for European unity.

At the same time, the new treaty — which is likely to introduce more automatic sanctions for overspenders and force states to include debt brakes into their national constitutions — will draw the 17 country eurozone much closer together. States will be forced to give up some central parts of their sovereignty, especially when it comes to deciding how much money to spend.

The U.K., with its euro-skeptic prime minister David Cameron, was seen as one of the main obstacles to reaching agreement among the 27.

 

30 comments

  • Ed  •  5 months ago
    In 1990 Margaret Thatcher warned that European countries would be very unhappy with the European Union and a single currency when they find out "they will have to cede their national sovereignty". That was, and still is, true. But, it was political suicide for Thatcher to say it out loud. Maybe now more people (especially Europeans) will agree with her that the EU is a bad idea.
  • Age of Empires  •  5 months ago
    The Euro is done!!! 10 members almost half dont agree....good bye..
  • whited  •  5 months ago
    Without this last, feeble attempt to steal sovereignty, expect a rapid run for the exits within days.
  • Age of Empires  •  5 months ago
    How the rest of the 17 are going to agree and give up their political agendas? forget it? politicians giving up their political agendas... no unless armageddon is unleashed!!
  • Apollo13  •  5 months ago
    stock market: two steps forward, three steps backwards.
  • tipt  •  5 months ago
    even if they all separate EURO WILL STILL REMAIN as universal european currency (even as virtual)
  • tipt  •  5 months ago
    kicking shit around
  • Honest John  •  5 months ago
    Buy...buy...buy...How much will the market drop tomorrow ? 300?? hahahahahahhahahahhahaaa!!!!!!
  • GBS  •  5 months ago
    One gigantic political CF..one that it's going to ruin the retirement of an entire generation..let me ask you this though..from a financial perspective, do you think this gigantic CF would have the same negative impact on the markets if Shorting wasn't allowed ?
  • mmmmooooo  •  5 months ago
    EU inflation is already 3%, look at Brent, think if the arsewhole ECB takes Mafia Boss Geithner's advice! Send the arsewhole packing back to the Cartel. Cut his dick off first.
  • Anonymous  •  5 months ago
    Good for the Brits! Germany is the second largest exporting nation in the world, after China, and ahead of the US. Half of what they export goes to European countries. There is no way that the other countries in Europe can compete or prosper - the playing field is not level. Germany needs to keep exporting to keep their employment and prosperity - but the rest of Europe has to stop buying in order to balance their budgets. Good luck on that!
  • SureWhatever  •  5 months ago
    That's it: the Euro is done. You can take that to the bank (as long as it's not a European one). Without an agreement to give the ECB unlimited bond buying discretion and the pooling of Euro government debt through issuance of common bonds, the Euro can't be saved. Don't get me wrong, I can't blame the Germans for refusing to pay for their club med neighbors down south...but that's what it would have taken to rescue the Euro. Alas, that did not happen.
    • mmmmooooo 5 months ago
      SO WHAT! Don't believe the DOOM, PROPAGANDA the media is owned by the banksters too!
  • yahooman  •  5 months ago
    Once and if my stock market money levels out Im stickin it straight to bonds. Bonds have out performed most stocks overall for the last 5 years anyhow. The stock market has just gotten ridiculous...
  • mmmmooooo  •  5 months ago
    THAT'S ILLEGAL, AGAINST THE TREATY! AGAINST GERMANY SUPREME CT! The arsewhole banksters need to TAKE LOSSES! You fff-iiing made BAD LOANS! behead them!
  • Joseph  •  5 months ago
    He's Obama's new Truthiness Czar
  • g  •  5 months ago
    Suppose 50 states in the UNITED States all decided to go their separate ways. Ooops. We have that now in the senate and house of representatives. Sorry.
  • archie1338  •  5 months ago
    Stock market down big tomorrow?
    • Frank 5 months ago
      Good Im waiting to buy more but at a reduce price.
    • Inkun 5 months ago
      just a little bit
    • ago13 5 months ago
      No, back up agan.......
  • max  •  5 months ago
    One would think this should make it easier for these 17 countries to agree, but it most likely won't
  • Sarah  •  5 months ago
    old news?
  • Ben  •  5 months ago
    This is like an f'in soap opera.
 
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