Britain cause panic with fiscal pact change of direction

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MPs and campaigners have described Britain’s decision to drop its opposition to the use of the European Courts of Justice to enforce a Euro-zone fiscal pact as a ‘worrying precedent.’

Leaders of the fiscal pact countries, France and Germany, have announced that they want the European Courts of Justice to regulate new rules that limit the amount of debt the euro-zone can accumulate.

Foreign Secretary William Hague revealed recently that Britain has dropped its threat to block the use of the EU institutions by the fiscal pact.

Priti Patel, backbench Tory MP, said: “I am alarmed by this, and anything that sets a precedent of this nature. It is a matter of serious concern. On areas of this nature, there should be no room for compromise”.

The fiscal pact’s wish to limit debt has been identified by British Government lawyers as ‘illegal’ to permit the ECJ to control the ‘debt brake’ rule, due to its absence in the current EU treaty.

EU countries were, however, reassured by senior British officials as they stated that David Cameron would not pick a fight over the issue throughout the summit.

Countries signing up to the new treaty are said to be welcome to use the institutions, but they must not “undermine” the European single market.

A spokesman at Number 10 said; “The fundamental principle here is Britain’s national interest. Our national interest is to ensure that the single market is not undermined. The institutions are there to operate in the interests of the 27.”

The Stability Coordination and Governance (SCG) Treaty, “empowers the Court of Justice to verify the transposition of the balanced budget rule at national level”. Therefore, the court has authority to impose financial sanctions should a party not comply with its judgment.

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