Czechs join UK on fiscal compact sidelines
Tuesday 31 January 2012 - by Andrew Hickley
The treaty, agreed in an informal meeting of European leaders on Monday, will strengthen fiscal discipline across the EU by introducing more automatic sanctions and stricter surveillance of countries that run budget deficits.
The move will see the ECJ being able to hit member states with a fine worth 0.1 per cent of their GDP if they run a budget deficit exceeding 0.5 per cent of nominal GDP.
Cameron also said that he would challenge any decisions made by the pair if they threatened to intrude on the functioning of the single market.
"It is in our national interest that the new treaty outside the EU doesn't encroach on the single market or the things that we care about," he told a press conference after the meeting.
"That's the outcome we want to achieve, so we'll be watching like a hawk."
If there is any sign that the institutions were intruding on the single market then Britain will "take the appropriate action", he added.
In a statement on the Czech government's website, Prime Minister Petr Necas said that the country would not adopt the agreement because of a lack of clarity related to its effective date, given that the country would need a "complicated ratification" of the agreement as it moves towards adopting the euro currency.
Necas also highlighted that the accord will see non-euro countries being unable to participate in all eurozone summits and does not pay enough attention to debt issues, he said.
However he did not rule out adopting the agreement in the future.
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