Europe's Stability Pact - which underpins the euro by setting fixed constraints on the size of budget deficits for euro members - is in trouble. The European Union's leading country, Germany, failed to meet its commitments to its EU partners concerning its deficit. Furthermore, it used its political muscle to block the early warning about its deficit that the EU Commission had mandated by the terms of the Stability Pact.
Europe's Stability Pact - which underpins the euro by setting fixed constraints on the size of budget deficits for euro members - is in trouble. The European Union's leading country, Germany, failed to meet its commitments to its EU partners concerning its deficit. Furthermore, it used its political muscle to block the early warning about its deficit that the EU Commission had mandated by the terms of the Stability Pact.