Friday, March 02, 2012

EU Fiscal Treaty

The signed version of the Treaty titled "TREATY ON STABILITY, COORDINATION AND GOVERNANCE IN THE ECONOMIC AND MONETARY UNION" is linked here from The Irish Times. (To be referred to in future on this blog as EU Fiscal Treaty)

Two items of interest to Britan as an EU member, subject to the diktats of the ECJ and the terms of the TFEU but a non-signatory to this farcial document, are as follows:

Article 8 Section 2 Final sentence:
If the Court finds that the Contracting Party concerned has not complied with its judgment, it may impose on it a lump sum or a penalty payment appropriate in the circumstances and that shall not exceed 0,1 % of its gross domestic product. The amounts imposed on a Contracting Party whose currency is the euro shall be payable to the European Stability Mechanism. In other cases, payments shall be
made to the general budget of the European Union.

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.



Anonymous Denis Cooper said...

That Article 8(2) is blatantly unlawful under the EU treaties, which do not give the ECJ the power to impose fines for infringements of any treaties other than the EU treaties themselves.

The Preamble states:

"RECALLING that Article 260 of the Treaty on the Functioning of the European Union empowers
the Court of Justice of the European Union to impose the payment of a lump sum or penalty on
a Member State of the European Union having failed to comply with one of its judgments and
that the European Commission has established criteria for the determination of the lump sum or
penalty to be paid in the framework of that Article"

But Article 260 TFEU starts:

"If the Court of Justice of the European Union finds that a Member State has failed to fulfil an obligation under the Treaties, the State shall be required to take the necessary measures to comply with the judgment of the Court."

and it is inapplicable when the obligation is not an obligation under the Treaties, ie the EU treaties.

5:54 PM  

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