These suggestions will not be applied in the State

Europe debt crisis caused such trauma among the political leaders that they decided to learn the lessons: on the eve of the weekend in Brussels, the 27 Heads of State and Government took two sets of decisions that are changes in the future functioning of the Union.

The first concerns the establishment of "a permanent mechanism for crisis management" to preserve the financial stability of the euro area as a whole How markets attacked, early 2010, Greek debt, threatening contagion most fragile link in the euro area and worrying European countries with the most solid reputation as the France and the United Kingdom, shook Governments. The Fund European stability, put in place in early May 2010 improvisation, is only provisional life of three years.

The France and especially the Germany received a long-term mechanism to be installed. Chancellor Angela Merkel has struggled and has been that the Treaty be amended to introduce this novelty, with several conditions: article 125 of the Treaty (said "no lease out", which stipulates that it is prohibited in a Member State, the European Union or the ECB to financially assist another Member State) will be maintained. The new help system will be granted in return for strict conditionality, will partner with the IMF and especially will involve the financial sector. European leaders are currently kept talking about "debt restructuring", but this hypothesis seems well present in the minds of the Germans.

After many hesitations, the twenty-seven have rallied to the principle of a "limited modification" of the Treaty, even if the idea of reopening this text to a reluctant public opinion concerned. Angela Merkel needs a legal basis no doubt to the Constitutional Court which, otherwise, may try such a structure, illegal explained his relatives. The revision could take the form of an "amendment" which would require a simple agreement the heads of State and Government unanimously. The absence of new transfer of sovereignty could prevent Governments to submit the ratification to referendum. The European Commission and the President of the European Council, Herman Van Rompuy, should make proposals in this direction for the December Summit. Twenty-seven will then take a final decision in the hope of setting up this mechanism before the end of 2013.

Preventive sanctions

In addition, the European Council endorsed the report prepared by Herman Van Rompuy on the strengthening of economic governance. The spectrum of the monitoring of economic and budgetary policies laid down by the Stability Pact is expanded and the patch branch hardened. For example, penalties, blocked bank deposits may be imposed as a preventive measure, i.e. before even that a country has exceeded the ceiling allowed a public deficit of 3 of GDP. He will then six months to correct shooting before be punished more severely. The budgets of the Member States will be better coordinated. Macroeconomic imbalances, such as real estate bubbles, external deficits, unjustified salary increases, will be in the interest of the European Commission and other States.

These suggestions will not be applied in the State. Now opens a period of negotiations with Parliament on the basis of the more stringent proposals of the European Commission. After amendments, the final measures should be adopted by the summer 2011. In any event, they do not apply to the States 24 - 27 - who are currently the subject of a procedure for excessive deficit and that follow the planned recommendations in the present Covenant, not reformed.