Log in
Please enter your login details

Skip to main content

Breaking News
  • Afghan President Ashraf Ghani delays state visit to India after heavy fighting with Taliban insurgents broke out in the north (NATO commanders/Reuters).
  • Sudanese president Omar Hassan al-Bashir has been re-elected after winning 94.5 percent of the vote in a poll held earlier in April (Election Committee/Reuters).
  • Sudanese president Bashir won 94.5% of vote in recent election, according to election committee.
  • Two French nationals are among the dead from the Nepal earthquake, says France’s foreign minister Laurent Fabius.
Facebook Twitter Google+ Reddit

Signed by all the 27 European Union member states, except Britain and the Czech Republic, the budget pact is what Germany demanded in return for financial solidarity with its debt-laden eurozone partners.

Euro area countries will have to follow so-called “golden rules” under which governments cannot borrow substantially more than they take in in tax revenues making balanced budgets mandatory.

For those that do not balance their budgets there will be automatic fines and the European Court of Justice will oversee the treaty.

The treaty will go into force either when 12 out of the 17 eurozone countries ratify it, or on January 1 next year. Half a dozen, including Germany, have already backed it.

The aim of the agreement is to slash spending and contain the debt crisis.

To set an example of fiscal responsibility, France has promised to find 30 billion euros of savings in next year’s budget.

However economists are fearful such big spending cuts will drag the French economy into recession.

More about: