EU deficit culprits strain new fiscal treaty

ceremony in Brussels on the second final day of a summit aiming to shift the focus from crisis management to jobs and growth.
The treaty is “a strong signal that we are drawing lessons from the crisis and that we are focusing on the future of a politically united Europe”, said German Chancellor Angela Merkel, the main architect of the pact. The countries signed up to a promise to anchor in their constitutions —  if possible — rules to stop their public deficits and debt spiralling out of control in the way that led to the eurozone crisis. The new treaty is “an important step in reinforc­ing the confidence in our economic and monetary union” and a “major step towards responsibility”, said EU presi­dent Herman Van Rompuy as he invited leaders to sign the document.
But amid the relief at progress made to overcome the crisis, new fiscal prob­lems in Spain and the Netherlands — one of the most outspoken critics of Greece’s fiscal recklessness — showed that dangers still lurk.
The Netherlands announced that its “provisional” public 2012 deficit would rise to 4,5 percent of gross domestic product from 4,1 percent forecast before, sparking a pointed rebuke from the European Commission.
“We think that the Netherlands is one country that has been very vocal when supporting the reinforcement of our fis­cal surveillance rules,” said European Commission economy spokesman Amadeu Altafaj. — AFP.