Wednesday, January 11, 2012

Third Draft Fiscal Compact is same sham as Growth and Stability Pact!

Read Arcticle 7 and one finds that the whole can of worms is not enforceable. By majority vote they can decide to let those breaking the limits continue scot free, just as happened with the original Growth and Stability pact for both France and Germany:

Article 7
While fully respecting the procedural requirements of the European Union Treaties, the Contracting Parties whose currency is the euro commit to support theproposals or recommendations submitted by the European Commission where a Member State whose currency is the euro is considered by the European Commission to be in breach of the deficit criterion in the framework of an excessive deficit procedure. This obligation shall not apply where it is apparent among the Contracting Parties
whose currency is the euro that a qualified majority of them, calculated by analogy with the relevant provisions of the European Union Treaties without taking into account the position of the Contracting Party concerned, is of another view.

Even the supposed rock solid, binding commitments to balanced budget constitutional amendments under Article 8 are only enforceable by the ECJ following a complaint by one of the other 11 (+?) signatories, who might indeed apparently stay at only the number 12 for all time, as there seems too be no consequences for any of the five euro group members who may never get agreement to sign up for the whole wierd arrangement.

Any comment, however brusque and brief as mine has been, cannot but call attention to the absolutely hilarious nature of Article 16, the final provision as follows:

Article 16
Within five years at most following the entry into force of this Treaty, on the basis of an assessment of the experience with its implementation, the necessary steps shall be taken, in compliance with the provisions of the Treaty on the European Union and the Treaty on the Functioning of the European Union, with the aim of incorporating the substance of this Treaty into the legal framework of the European Union.

Two other treaties with twenty seven (at present) signatories, to enforce a contract possibly signed by only twelve of their number. Just how can that work and when will this moment of truth come? Up to the five year point it is apparently not yet time, one nano-second later it is already too late!

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