Daily Archives: October 25, 2010

After a day’s worth of summiting in Luxembourg, we seem no closer to learning just how serious a dust-up might occur at this week’s European summit over the issue of reopening the EU’s treaties as part of an effort to prevent another Greek-style crisis.

The German government has pushed it to the top of the agenda, but officials from countries large and small – as well as, privately, José Manuel Barroso, president of the European Commission – have voiced their distaste for another full-blown treaty overhaul, which has proven arduous and politically debilitating in the recent past.

“After 10 tortuous years we managed to chain the fierce beast and lock it in a chest for at least another decade,” said one European diplomat from a country opposed to the move. “Who guarantees us that the wretched animal will not leap out and devour us all?”

According to diplomats, the key issue appears to be how hard Germany will push their demands. Read more

When the E.U.’s heads of government meet later this week at one of their regular summits, it will mark the first time since narrowly saving Greece that they will take up a controversial set of rules aimed at preventing a future Greece-style implosion.

But nearly lost in the debate over the new rules - which has focused on how and when to fine countries who fail to get their debt levels down – are provisions in the proposed eurozone regulations that could have a much more politically explosive impact on national governments.

For the first time, the EU is proposing it should have a say on how to make individual economies more competitive. And if Brussels isn’t listened to? Fines could be imposed. Read more