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Swedish Prime Minister Reinfeldt don’t seem satisfied with Euro treaty terms on Swedish

Friday, 09 December 2011
Swedish Prime Minister, Fredrik Reinfeldt after reading the text of the proposed rules on strengthening economic governance of the euro countries, doubts whether Sweden should join in signing the treaty voluntarily.

"It's so because Sweden, which not a euro member would join the rules that are perfectly suited to the euro zone, "said Reinfeldt to the Swedish news agency, TT.

At five o'clock in the morning EU leaders break way from the summit in Brussels in order to provide time for consultations, sleep deprivation and related had taken a toll. Then they had negotiated for nearly ten hours and it was clear that it is impossible to get all 27 EU countries to back a treaty amendment to include strengthening budget discipline

Strongest opposition came from the UK which wants protection for its internal market and financial sector in exchange for giving the go-ahead to modify the EU treaties. But the British demands were unacceptable to Germany and France.

Therefore, it becomes the 17 euro countries that had go on with their own agreement. It is free for non-euro countries to join and so far six non euro countries have registered their interest.

Swedish Prime Minister, Fredrik Reinfeldt, had no mandate from the Swedish voters to give any notice of Swedish participation in the meeting. He must first consult with the parliamentary EU committee in Sweden with hi own view of the issue before a go-ahead can be determined.

But the way things look according, to Reinfeldt, is not looking good.
“I think the measures go in the right direction and we should legitimately be able to support, them” said Reinfeldt at a brief press conference early in the morning.

"I am of course willing to discuss it with the Committee, but if you read the text, it seems somewhat odd because the text is written to that the euro zone members must submit to certain restrictions and do certain things. It can not be reasonable for a non-euro zone country to join, "he said to TT.

One of the key issues is to build a strong financial firewall, so that the market is confident that there is enough capital to support the crisis countries and the financial sector. The countries agreed now that the permanent rescue fund ESM, which would take effect in 2013, instead will be launched next year. It will have a capacity of €500 billion.

EU countries, including Sweden, are also willing to increase its contribution to the IMF to €200 billion.

But the mandate the PM came to Brussels with was to agree to a protocol change under the EU Treaty which strengthens the euro countries' economic policies and governance, but not a major treaty changes.

It also built on to that all 27 EU countries would be involved in such an arrangement. But, he notes, it was not possible because in the first place Britain would not participate in anything like that.

But EU leaders are not ready with all the details and there are complex legal issues that need to be sorted out.  Officials will now continue working for a few hours with the outstanding issues and at 11 EU leaders will sit again to continue their negotiations.
By Team

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