All other than two of the EU's 27 leaders have signed a new treaty to enforce budget regulation within the community. Critics argue that the pact is mainly a political gesture aimed at reassuring taxpayers in Germany, the euro zone’s dominant economy, where there is unwillingness to pay for further euro zone bailouts. German Chancellor Angela Merkel described it’s as a great leap, a first step towards stability and biased union.
The economic compact will at the present go before national parliaments and, in the case of the Irish Republic, a referendum. The restoration of confidence in the future of the euro zone will lead to economic growth and jobs. This is our ultimate objective. These new powers may face an early test as both Spain and the Netherlands have admitted they will fail to spot targets for reducing their deficits.