New eurozone compromise deal to be put to Poland

Prime Minister Donald Tusk said this week that Poland will not contribute to the EU bailout fund, or sign any new fiscal treaty, if it is not allowed to take part in eurozone meetings.

"Our efforts aim at a fiscal agreement the shape of which does not make the division of Europe into two clubs - the eurozone and countries outside the club - more lasting than is safe in our opinion," Tusk has said.

EU president Herman von Rumpoy will be in Warsaw next week to try and hammer out a compromise deal on the pact, which he aims to get signatures to this March.

And a new compromise wording, seen by EUobserver, would allow non-euro signatories to attend the meetings "in order to discuss specific issues concerning the implementation of this treaty."

The compromise is still thought to come short of Polish demands, which want the full participation of states which intend to adopt the single currency at the appropriate time at eurozone meetings.

EU finance ministers will be debating the issue in Brussels early next week and PM Tusk said that "whether Poland joins the fiscal pact or not depends on their resolution."

The new fiscal pact will put in place a centralized correction mechanism to be triggered “automatically” in cases of significant deviations from a structural deficit of 0.5 percent of GDP, according to the earlier draft dated January 19.

The European Commission will also deadlines for budgetary convergence.

The UK has said it would not take part in the scheme. (pg)