"The treaty hammered out by French President Nicolas Sarkozy and German Chancellor Angela has been watered down to complete meaningless with new provisions that would allow countries to "temporarily deviate from the rules in case of an usual event" or in "periods of severe economic downturn."
Bear in mind the there is an existing "Growth and Stability Pact" and among the first violators of that pact was Germany. Eventually every nation in the EMU violated the pact.
The point of the Merkozy Treaty was to prevent that from happening again. So why was the treaty watered down?
The Answer is Ireland
The Financial Times comments on the Irish legal threat to European fiscal treaty
Bear in mind the there is an existing "Growth and Stability Pact" and among the first violators of that pact was Germany. Eventually every nation in the EMU violated the pact.
The point of the Merkozy Treaty was to prevent that from happening again. So why was the treaty watered down?
The Answer is Ireland
The Financial Times comments on the Irish legal threat to European fiscal treaty
The Irish government is likely to face a court challenge if it decides not to hold a referendum on a new European fiscal treaty, potentially plunging the country and Europe into months of legal uncertainty..."at http://globaleconomicanalysis.blogspot.com/2012/01/reason-for-watered-down-merkozy-treaty.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29
