Europe secured an historic agreement to draft a new treaty for deeper economic integration in the euro zone on Friday, but Britain, the region's third largest economy, refused to join the other 26 countries in a fiscal union and was left isolated.Note EU-Digest: the main points of the new Fiscal agreement include:
- a cap of 0.5% of GDP on countries' annual structural deficits
- "automatic consequences" for countries whose public deficit exceeds 3% of GDP
- the tighter rules to be enshrined in countries' constitutions
- the EU's permanent bailout facility, the European Stability Mechanism (ESM), to be accelerated and brought into force in July 2012
- the adequacy of 500bn-euro (£427bn; $666bn) limit for the ESM to be reassessed
- eurozone and other EU countries to provide up to 200bn euros to the International Monetary Fund (IMF) to help debt-stricken eurozone members
For more: Europe pushes ahead with fiscal union, UK isolated | Reuters
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