New Euro Accord Consists of 23 Countries; UK, Hungary to Exit New Treaty; Expect More Exits; Treaty Signers Need to Collectively Pony Up $268 billion to IMF

Tonight we have news that only 23 of 27 nations will agree to new treaty. Please consider New euro accord to include 23 countries

The president of the European Council said Friday that a new intergovernmental treaty meant to save the euro currency will include the 17 eurozone states plus six other European Union countries — but not all 27 EU members.

German Chancellor Angela Merkel praised the plan.

"I have always said, the 17 states of the eurogroup have to regain credibility," she said. "And I believe with today's decisions this can and will be achieved."

Herman Van Rompuy, president of the European Council, said the countries would provide up to euro 200 billion ($268 billion) in extra resources to the International Monetary fund.

French President Nicolas Sarkozy said early Friday he would have preferred a treaty among all the members of the European Union. But that could not be achieved, he said, because the British proposed that they be exempted from certain financial regulations.


He said the new accord should be ready by March.

UK, Hungary Exit Treaty; Czech Republic and Sweden Consult with Respective Parliaments

The BBC reports Summit abandons EU-wide treaty change

Attempts to rescue the euro will focus on a deal among the 17 nations that use the single currency, French President Nicolas Sarkozy has said.

Speaking at a news conference after nearly 10 hours of talks, Mr Sarkozy said he would have preferred a new treaty among all the EU members.

But he said that British Prime Minister David Cameron had proposed a protocol to be written in the deal allowing London to opt-out on proposed change on financial services.

"We could not accept this," Mr Sarkozy said.

Mr Sarkozy added that Hungary also decided to remain outside the proposed treaty, while the Czech Republic and Sweden wanted first to consult with their parliaments.

Expect More Exits

Fortunately for Cameron, Sarkozy would not give into his demands. This makes Sarkozy the culprit even though Cameron handled the situation badly.

The UK should take the next step and exit the EU and all of its nonsensical rules completely.

The losers who stay in the proposed Merkozy treaty get the pleasure of forking over a collective $268 billion to the IMF. Expect the number who stay in to shrink. Then in May, unless the proposed treaty is further watered down, expect some of the 17 EMU (Eurozone) members to refuse to ratify the treaty.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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