New Treaty on €uro-Area Governance creates specific Summits for Economic and Other issues

The Governance of €uroarea (GEA), consisting of Regular Heads of State/Government Summits, due to discuss and decide both on Economic and "Other issues" concerning them, will permanently incorporate also the President of the Central European Bank, and (in order to associate EU Citizens closer and regularly), it will also create a "Conference of Representatives" from MEPs and National MPs from the 17+ Member Countries' involved, ... entering into force on January 2013, or even earlier, if at least 12 (out of the 17) €uroarea Countries ratify it beforehand.

Thus, even if one or two, among the 17 €uroArea Countries might, eventually, hesitate to immediately ratify the Treaty, (and/or if, f.ex., controversial Socialist candidate to French Presidential Elections, Hollande, threatens to re-negotiate its text : Somehing which was criticized by various key players, including from Germany : See, f.ex. Reply of Finance Minister Schaüble to "EuroFora"s question, etc), then, a Majority of the Counties who signed the Treaty will not be blocked, nor delayed at all, but can go on and make it enter into force without having to wait. A any case, "the granting of financial assistance in the framework of .. the European Stability Mechanism will be conditional... on the ratification of this Treaty by the (State) concerned", €uroTreaty warns.

Simply reading the Finaly agreed, full authentic Text makes it obvious that, in addition to the Economic Governance tools that "EuroFora" has already highlighted earlier, (See f.ex. our relevant NewsReports from the Franco-German Summit, Sarkozy-Merkel, of August 16th, and from EU Brussels' Summits of December 2011, as well as January 2012, etc),  "it's also about bringing a closer Political integration" in €uroArea, as German Chancellor Angie Merkel observed from the outset at her concluding Press Conference, in a statement which would certainly please  President Nicolas Sarkozy, given France's well known preference to stress mainly Political aspects in european developments, (comp. also Replies by Sarkozy's Counselor to "EuroFora"s relevant question in Brussels' Jan. 2012 EU Summit), ...

In particular, the New, 2012 €uroArea Treaty states from the outset that it's not only about Financial "Stability", but also about "Coordination and Governance".

- "Heads of State or Government of the €uro area Member States agreed on 9 December 2011 on a Reinforced Architecture", it reminds,

    This is not only in order "to work Jointly towards an Economic Policy", since the signatory States must "develop ever-closer Coordination of economic policies within the €uro area", (particularly on "the Issues that are Essential to fostering Competitiveness", as "identified" by the "Euro Plus Pact", already endorsed by Heads of State/Government "on March 2011"), but also in order to became able to "take the necessary actions and measures in all the areas which are essential to the proper functioning of the €uro area", as it adds.

    Indeed, "foster Budgetary Discipline through a Fiscal Compact", and "strengthen the Coordination of .. Economic Policies"; goes hand to hand with the Wider "purpose" to "improve the Governance of €uroArea", the Treaty's "scope" observes.

    This naturally includes the already existing "EU's Objectives for sustainable Growth, Employment, Competitiveness and Social Cohesion", but is not limited just into that.

    "In particular", it "notes" "the the wish of the Contracting Parties to make a more active use of Enhanced Cooperation", as provided for by EU's Lisbon Treaty, (which entered into force since December 2009), "and their wish to have full recourse to Measures Specific to the Member States whose currency is the €uro".

    For that purpose, it recalls "the Agreement  the Heads of State or Government of the €uro area Member States, of 26 October 2011, to improve (its) Governance ...including (by)holding ..at least 2 Euro-Summit(s) .. per Year", (i.e. at least each 6 Months).

    Such "€uro-Summits" of Heads of State/Government may be convened not only "immediately after meetings of EU Council", but also after "meetings  (of) ...all Contracting Parties having ratified this Treaty" on €uroArea, as well as whenever it might be "justified by Exceptional Circumstances", adds the official text, clearly revealing the Autonomy of such important €uro-events at Top Political level.

    They "take the necessary actions and Measures in All the areas which are Essential to the proper functioning of the €uro Area", (including "Growth through enhanced Convergence and Competitiveness, .. Employment, ... Sustainability of Public Finances and reinforcing Financial Stability", etc).
    
    For that purpose, the Countries involved, "stand Ready to make active use,....of Measures Specific to those Member States whose currency is the €uro", "and of Enhanced Cooperation", "..on matters that are Essential for the proper functioning of the €uro area"
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    Under the Heading : - "Governance of the €uroArea", the Chapter V of the New Treaty anounces that "the Heads of State or Government of the Contracting Parties whose currency is the €uro shall meet informally in Euro Summit meetings".
    
    €uro-Summits "shall take place ... at least Twice a Year", and "when(ever) Necessary", (i.e., they might become, in practice, even More Frequent than he Summits of the 27 EU Members States sharing together the Single Market)..

   
 >>> For their Political dimensionn, it's important to note that, according to the New Treaty, €uro-Summits are due "to discuss" not only "questions relating to ..Specific responsibilities .. with regard to the Single Currency", "and Strategic Orientations for the conduct of Economic Policies to increase Convergence", but also "Other Issues concerning the Governance of €uroArea". 

 The 2012 Treaty also adds that Heads of State/Government will "meet ... together with the President of the EU Commission", and introduces an important innovation by setting the New Principle that also "the President of the European Central Bank shall be invited to take part" always.
    
    This novelty, (which adopts for ever the initial decision of €uroArea's Heads of State/Government to invite CEB's President Draghi at the December 2011 Brussels' Summit, fits with recent developments consisting into allowing the CEB to start playing an important new role in the protection of €uroArea, f.ex. with 2 massive moves to offer succesively 488 and 539 Billions € for Loans with only 1% interest rate for 3 Years to Banks in Europe on 12/2011 and 2/2012, which already contributed into ensuring enough Liquidities for Economic Investments and for Sovereign Bonds, (See specific "EuroFora"s NewsReport, herewith).

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Catching up with the delayed "Missing Link"...
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     ECB's new, active role in €uroArea's Governance (See supra) had been already prepared by the Historic, "Compromise of Strasbourg", when the 3 Biggest €uroArea Countries : Germany, France and Italy, had decided, at an exceptional Merkel - Sarkozy - Monti Summit, end of November 2011, to "avoid unilateral declarations for or against ECB's independent decisions", which was closely followed by the 1st ever participation of ECB's President Draghi to the December 2011 EU Summit in Brussels, (as "EuroFora" had observed in EU Parliament's Press Conferencies, later on in Strasbourg : See relevant 12/2012 publications). But, in fact, there was already a strong "Feeling floating in the air" in this direction, as early as since the landmark August 16th, exceptional Franco-German Summit Sarkozy - Merkel at the Elysée Palace in Paris, i.e. precisely when the Idea  to create "regular €uroArea Summits" was anounced for the 1st time, (See "EuroFora"s NewsReports from Paris/Elysée palace, then).

    In fact, such institutional developments had been politically scheduled already by the Historic Fathers of the €uro Currency :  - "European People will start revolting and ask to create a Governance of the €uroArea", since most Tools traditionaly used by Keynesianist reforms in order to overcome the cyclic Crisis, (f.ex. State Budget's Deficit, absorbed by Monetary creation and/or Public Debt, Fiscal policy, etc),  had been transfered from the National States up to a €uropean Level", (mainly  ECB itself) : This was, indeed, a leitmotiv in EU Parliament Plenary's landmark Debates, as early as since October 1995 in Strasbourg, when MEPs, EU Commission, EU Council and even UNO's leaders had dissussed "Europe's Future"....

    So that after the Economic Reforms for the creation of €uro Currency entered into force, back since 1999, followed (according to the Schuman theory for the edification of Europe "step by step") by Political, Institutional Reforms contained in the Referendum for EU's "'Constitution"' (2005), then, the EU was practically ready to start  a New, Fresh round of Negotiations for the "Missing" Reform due to create an €uroArea"s Governance, long BEFORE the 2008-2009 Global Crisis, which would have been able to prevent, alleviate, better face and sooner overcome the USA-imported upheaval.

    But, as it's well known, the attempt by some fomer "Socialist" Governments to impose the controversial and unpopular Turkey's EU bid since 1999, provoked strong reactions by EU Citizens, which resulted to an unprecedented Majority Abstention in EU Parliament Elections and 3 "No"' to EuroReferenda during that "Dark" period of EU - Turkey so-called "Accession Negotiations between 1999/2000-2005, practically Blocking EU's Institutional/Political Reforms and Europe's development for many Years...

    Until French President Sarkozy's crystal-clear "No" to Turkey's controversial and unpopular EU bid, strengtherned also by German Chancellor Merkel's "No" since 10/2005 and mainly 9/2009, added to the Debates and Results of the latest, June 2009 EU Parliament's Elections, (See "EuroFora"s analysis and cited Facts), followed even by more National Elections' results in a similar direction afrerwards, up to 2010/2011, notoriusly made it possible to overcome that Blockade, rapidly prepare and start working with New EU Institutions (thanks to the "Lisbon Treaty"), from December 2009-January 2010 until now.

    Meanwhile, however, the USA-imported Global Crisis had hit also Europe, from the end of 2008 - beginning of 2009, which was, then, found Unprepared, contary to the initial Plan of the Historic "Fathers" who had created the "Euro" Currency back in the 1990ies (See supra). So that the Franco-Gertman couple Sarkozy-Merkel and their €uroZone allies from other Member Countries, had to hastily try to start building up from scratch the obviously necessary €uroZone's Governance DURING the Global Crisis, and particularly on the "occasion" of the huge Debt provoked by previous Financial and Political Errors to Greece, which "exploded" between 2009-2012, (aggravated, also, by an obvious exploitation by some hypocritical, in fact Anti-European networks).

    But Now, even this (in fact, artificially provoked problem) seems ready to be fixed soon, at least as a matter of urgency, as most players and observers expect during this Month of March 2012, and both President Sarkozy as well as Chancellor Merkel, echoed by EU President Van Rompuy and EU Commission's President Barroro, as well as the competent EU Commissioner Oli Rehn and even new EU Parliament's President Martin Schulz, (etc), have just declared.

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    On the contrary, "the President of the European Parliament may be invited to be heard", if the €uro-Summit decides so, MEPs being regularly informed by "a Report to the European Parliament after each Euro Summit meeting".

    But, a brand New "Conference of representatives of the relevant committees of the EU Parliament and ...of National Parliaments", wil be "organized" in order to  "Discuss .. Issues covered by this (€uroArea Governance) Treaty", i.e. on "Budgetary.. and Other" policies.  
    
    The creation of this New Institutional Tool "will" be "determined together" by "EU Parliament and the National Parliaments" of Member States.
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    "The body charged with the preparation of and follow up to the €uro-Summit meetings shall be the €uro Group", composed by Finance Ministers, (and not EU Commission, nor EU Council),
    
    On the highly controversial issue of the level of participation of Non-€uroArea Countries, members of the EU, which signed the 2012 Treaty on EAG, the text says that their "Heads of State/Government .. shall participate in Discussions (i.e. without Vote) of €uroSummit(s) .. concerning Competitiveness, ... Modifications of the Global Architecture of €uroArea, and the Fundamental Rules that will apply to it in the Future, as well as ... on Specific Issues", "at least Once per Year", (i.e. not always) : Another incitment to hurry up their accession into €uroZone...