EU hard to sit back and relax the face of the debt crisis

17 EU leaders ended a two-day summit on how to modify the "Lisbon Treaty" agreed to establish a permanent mechanism to help lay the initial legal basis. Meanwhile, in order to prevent and respond to possible future debt crisis, 27 leaders also outlined the mechanism of this general framework of permanent relief, that a resolute determination to defend the stability of the euro area. However, this fledgling ability to never never troubles coping mechanisms, so sit back and relax since the debt crisis facing the European Union, are still unknown.

Embryonic form of permanent relief mechanism

The end of the 16th the first day of the summit, EU leaders agreed that a simplified procedure based on the "Lisbon Treaty" limited changes include a paragraph in the treaty content, namely, "a member of the euro as their currency to the establishment of a stable set of mechanisms, forced, in order to maintain the overall stability of the euro area is activated. According to the mechanism required to provide any financial support, must be strict conditions attached. "

Accordance with the relevant procedures, the modified plan will take effect in January 2013. By then, the permanent relief mechanism will have a solid legal basis for future assistance to other euro area member states will abide, and the relief mechanism of the leaders of the largest investment Fangde Guo, they may also have doubts about the legality of the aid are accountable to domestic constituencies.

According to the agreement reached by leaders of the European Union, called "European stability mechanism" will be a permanent relief mechanism of 750 billion euros of existing mechanisms for template design for interim relief, the International Monetary Fund (IMF) will also participate, but will be strictly IMF's practice with reference to the operation. Second, this mechanism would be to provide assistance requested by Member States, and subject to unanimous approval of the euro area member states. Third, assistance can only be a last resort, that is, only when a crisis threatens the euro-zone countries when the overall stability of the euro area, when forced to start this mechanism. Fourth, the relief will be strict conditions attached, as Greece and Ireland, as the two countries must come up with a satisfactory program of fiscal austerity and economic reform. Finally, if the euro-zone countries need debt restructuring, permanent relief mechanism will allow the euro area sovereign bonds held by private investors to take some losses, but how the decision will be based on the case, but this is not a prerequisite for providing assistance.
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