Mr Sarkozy said he had agreed with Ms Merkel’s demand for a revision of the full EU governing treaty to enshrine an enhanced fiscal disciplinary regime.
The changes will include more “automaticity” in the process of punishing states that breach the EU’s 3% public deficit limits. A move to fine a country will in future only be overturned if a qualified majority of eurozone countries agrees to overturn it.
Ms Merkel has watered down her demand that the European Court of Justice adjudicate on breaches of fiscal rules. Under the compromise, each eurozone government will have to adopt in its constitution a “golden rule” that prevents it from persistently running budget deficits. The ECJ will merely rule as to whether each eurozone country’s “golden rule” complies with the new treaty.
OK, so you are an Italian or a Greek. Right now you have a government that you have not elected having terms dictated to it for a new treaty giving powers to a foreign body to decide whether they are to fine your country if the government you haven't elected fails to collect as much tax as it expected to pay all its bills.
And if your government fails to pay, what is the recourse?