THE INTERGOVERNMENTAL treaty negotiated at last week’s summit in Brussels will be signed into effect in early March at the latest, according to president of the European Council Herman Van Rompuy.
Speaking yesterday in front of the European Parliament in Strasbourg, Mr Van Rompuy said the process of restoring confidence in troubled economies had been more difficult than most had expected but described last week’s summit as a moment of responsibility and solidarity by the European community.
Mr Van Rompuy also announced that a review would be held in March 2012 on the total resources available to the European Financial Stability Facility – which is the current state rescue fund – and the European Stability Mechanism – which will replace it next year. The ceiling for such resources is currently €500 billion.
“I count on everybody being constructive, bearing in mind what is at stake,” said Mr Van Rompuy, who welcomed a statement from British prime minister David Cameron that he will continue to participate with European Union institutions despite having walked away from the “Fiscal Compact Treaty” last week.
At the summit held in Brussels on December 8th and 9th, 23 countries agreed on stricter financial rules, while three others agreed to send the deal before their respective national parliaments.
Any hopes of a unanimous agreement were dashed by the United Kingdom as Mr Cameron vetoed a new treaty for the 27-member European Union after his demand for special protection of Britain’s financial services industry was denied.
Despite this, those countries that have signed up to the agreement plan to implement closer financial regulation regardless of Mr Cameron’s stance.
“This will not be the first time that more engaged member states have proceeded by agreement without waiting for all to join the new initiative,” said Mr Van Rompuy. He added that this was the case with the launch of the euro project itself.
Also speaking before the parliament in Strasbourg yesterday, president of the European Commission José Manuel Barroso said Mr Cameron’s demands could not have been accommodated as they would have risked compromising the integrity of the internal market.
“This made compromise impossible. All other heads of state or governments were left with the choice between paying this price or moving ahead without the UK’s participation and accepting an international agreement among them,” he said.
Mr Barroso praised what he said was the general consensus shown by member states. He said that the greatest risk prior to the meeting in Brussels was a split between the 17 euro countries and the other 10. Instead of being a “17 plus” agreement, it was a “27 minus”, he said.
He also reassured the European Parliament that the treaty would not replace European institutions in the decision-making process.
“The agreement will not replace union institutions and procedures but on the contrary build on them,” he said. “The commission will do all it can so that this agreement is legally safe and institutionally acceptable.”