Czech PM: "Czech Republic not ready for now to join EU fiscal pact limiting public debt levels"

The Czech Republic’s prime minister says he will not sign, for now, a new European treaty that is designed to limit public spending and restore investor confidence in the region.The agreement is expected to be signed by the leaders of nearly all the EU countries today at a summit in Brussels.

Petr Necas said his government agreed Wednesday on his mandate not to sign. The government, which is split on the issue, will discuss the deal further in the future. The leaders of 25 of the 27 European Union states agreed last month on the deal designed to stop overspending in the 17 countries that use the euro.

Only Britain and the Czech Republic, both of which don’t use the euro, decided not to endorse the accord.

For more: Czech PM: Czech Republic not ready for now to join EU fiscal pact limiting public debt levels - The Washington Post

Europe signs up to German-led fiscal pact

Only Britain and the Czech Republic refused to sign a fiscal compact in March that will impose quasi-automatic sanctions on countries that breach European Union budget deficit limits and will enshrine balanced budget rules in national law.

The accord was eagerly greeted by the European Central Bank which has long pressed euro zone governments to put their houses in order.
 
"It is the first step towards a fiscal union. It certainly will strengthen confidence in the euro area," ECB President Mario Draghi said.

For more: Europe signs up to German-led fiscal pact | Reuters