EU 25 reaches compromise on eurozone deal

Finance Minister Rostowski (left) with PM Tusk (centre) in Brussels: photo - PAP/Radek Pietruszka

“[The agreement] does not satisfy us 100 percent but we have decided to sign the pact,” Prime Minister Donald Tusk said last night in Brussels after the informal summit on the finance crisis.

Poland went into the summit demanding that it be included in all summits and intergovernmental meetings on the eurozone crisis, a proposal that France in particular had to be won over to.

The compromise agreement says that non-eurozone countries such as Poland “should participate in eurozone summits at least once a year,” assured the EU's permanent president Herman van Rompuy.

Poland and the other non-eurozone nations can also participate in eurozone summits on competition and employment.

Moreover, the leaders of the eurozone 17 will have to justify why they will meet for summits, and their deliberations to call a summit will have the full participation of non-eurozone members.

PM Tusk said the new agreement “maintained the status quo” in the EU.

The pact in general will strengthen the European Commission's role in coordinating fiscal policy within the 17 nations. The European Court of Justice will also have increased powers to impose penalties on nations which do not keep in line with budget requirements.

Czech Republic's eurosceptic prime minister Vaclav Klaus said there were constitutional constraints on his nation signing the pact. The UK had earlier said that it would not participate.

Emphasis on growth

Many observers are saying that the pact itself has been a distraction and the real emphasis last night on fighting the eurozone crisis was on stimulating growth.

"We must do more to get Europe out of the crisis," a joint statement by all 27 national leaders says.

The EU will find more investment for more training for young people, reduce barriers to doing business across the 27 countries, and ensure that small businesses have access to credit.

Around 10 percent of the the working population are currently without jobs within the EU. (pg)

source: PAP/IAR