December 15th, 2011
02:34 AM GMT
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London (CNN) – Europe’s new treaty – dubbed the “fiscal compact” – is facing some hard realities on the ground. Signs the deal could be difficult to push through in both euro and non-euro countries are emerging.

In Warsaw, protestors have rallied against, among other things, Poland’s tacit agreement to lose some sovereignty to join the European treaty club. In London, political bickering continues over British Prime Minister David Cameron’s veto of the European deal.

In Ireland, a referendum may need to be held, with Irish Prime Minister Enda Kenny noting some detailed technical and legal considerations are yet to be clarified. Swedish Finance Minister Anders Borg says the country - which does not use the euro - would not agree to all the budget discipline rules. And the Czech Prime Minister Petr Necas has said the proposed pact is still just a blank piece of paper.

In Germany, Chancellor Angela Merkel told the Bundestag the path to stability continued. In Italy, new Prime Minister Mario Monti said the deal had done enough to calm the markets.

But on Wednesday U.S. stocks fell, the euro dropped to its lowest level in 11 months and Italian bond yields rose.

European leaders promised to sign off on this fiscal compact at its next leaders' summit in March. Will the markets give them the time to fill in the details...  and the cracks?



soundoff (26 Responses)
  1. vijay

    this is test comment

    December 15, 2011 at 7:13 am |
  2. Bernard Vel

    One negative article each day keeps the Euro at bay.

    December 15, 2011 at 7:13 am |
  3. Rex O Slate

    IF this deal can not stand the test of free exchange of opinions, then there still needs work to be done. Time will be the final test of whether the necessary compromises can be made in Europe to overcome the problems that appear to be inherent within the treaties as they now stand. The Euro and the present form of the European Union is still in the infant stage. No amount of exchange of ideas can change this fact. Europe as individual nations with various treaties among themselves is quite old. The present form of Europe, however, is quite young. Growing pains are to be expected, but unfortunately they are contributing to an already highly insecure worldwide economic environment. Bad timing ...

    December 15, 2011 at 8:13 am |
  4. Matt

    Jim Boulden your Anti-EU and Anti-Euro articles and interviews are getting more then shameful. Perhaps you should find a new job instead of acting like a cheap Troll. The US now has 15 Trillion Debt. Now at 52 million Americans without Health insurance. Almost 50Million on Foods stamps. Where is your gloom and doom about the US while it`s sitting on the Largest Debt Pile in the History of our World? Talk about GIANT CRACKS.

    Where are your stories about the UK CRACKS with it`s massive protests and debt? When are you showing the now viral and famous racism video of the woman and child on the London Bus? Or the fact that Scotland was not asked by Cameron if they wanted to actually veto the EU Fiscal Union. Scotland was outraged by Cameron's decision. WHERE ARE YOUR STORIES ABOUT THIS? It`s not even mentioned in this article about the deal. Talk about bias beyond belief. Take your Propaganda back to the dark ages.

    December 15, 2011 at 8:33 am |
  5. David

    CNN,

    Are you jealous of the Euro? We in Europe love it. Maybe do an article on that.

    December 15, 2011 at 8:44 am |
  6. Markus

    Other daily dose of Eurohate from a Eurohater to Eurohateland.....get a grip and talk about your own (enormous) mess first.

    December 15, 2011 at 9:18 am |
  7. william

    People are getting sick and tired of the EU elite coming up with more and more laws to protect their jobs/power. It's time for a revolution, we need to accept that the EURO HAS FAILED !!

    December 15, 2011 at 9:52 am |
  8. Pereira

    Davis, when you say people Love the Euro, speak for you, or your Country... here in Portugal, we Hate it, and brought us nothing but a BIG cut in salaries and a BIG increase in prices... Not to say that in Portugal we get 480€ for a month work... I really hope the Euro goes, and Merkel gets back to it's Bundestag... She is finishing the work of previous Germans that have not been able to do with bombs, what she does with a pen, and the French, again, surrendered to the Germans... But there is no Alliance this time... The Euro is doomed from the first day, or even before that...

    December 15, 2011 at 10:12 am |
  9. richsingles

    Great article , my husband and i both love this...he is a good man , i met him via ~~-WeαlthУFlirt. СòM- –~..it is the largest and best club for wealthy people and their admirers to chat online. …you don’t have to be rich there ,but you can meet one ,maybe you wanna check it out or tell your friends ......@love it -

    December 15, 2011 at 10:15 am |
  10. Riko

    One negative article each day keeps the Euro at bay.
    --------
    No, this better explaine the situation.

    "Five negative articles each day, keeps the Euro at bay".

    Even when they don't have a new material, they "lets trash Euro" articles link from outside, or from CNN archive? Funny, they are realy think that Europeans are monkey? Come on CNN, Europeans invented propaganda!

    December 15, 2011 at 11:07 am |
  11. Ray

    I am glad to see that many others in this forum have noticed the same thing as I, namely that unless another 'doomsday' article appears the subject of coming out of 'the crisis' might evaporate on it's own. Agenda-pushers behind this sort of thing need to keep reminding 'the markets' lest they forget that doomsday is just around the corner. So PLEEAAASSSE, please keep the Euro depressed and please PLEEAAASSE don't buy the securities of these 'doomed' Euroland countries, because in so doing you are SOOOOO helping my short-sold margins. Plenty of wonks out there stand to make a hefty profit and look pretty smart in the process doing so.

    December 15, 2011 at 11:54 am |
  12. Davis Bradley

    Europe might as well give up. The U.S. and UK are too great a financial, political, and military force to be reckoned with. Italy says it's enough to calm the markets but the tragic truth is that the markets do not want to be calm. The markets want the Euro gone yesterday (and along with it the European Union if possible). Regardless of how "nice" it is to have a common currency, the English and Americans simply will not allow it. So, it's best to face facts, and give in to the demands of the Americans and English. They own most of Europe anyway so might as well let them have their way.

    December 15, 2011 at 12:51 pm |
  13. Robert

    It seems we are in an Economic World War and the USA/UK are the enemy of the EU. Interesting times ahead. Pox on all their houses.

    December 15, 2011 at 1:26 pm |
  14. Paul Johnston, PhD Economics

    THE EURO IS DEAD AND FINISHED - INVESTORS WORLDWIDE ARE BAILING OUT - GET OUT WHILE YOU CAN!

    December 15, 2011 at 2:03 pm |
  15. Vincent

    This hysyteria against the eurozone is becoming difficult to stand. This is like French-bashing in 2003-6. Remember what people in soviet Russia used to say: "In the East, everybody knows that everything in newspapers is lies, while in the West, they do not know". The problem is that nowadays, educated people in the West start to know. Thanks to unethical behaviour of medias which are waging economic wars instead of analysing contexts.

    December 15, 2011 at 2:11 pm |
  16. Manuel

    Pereira, you are lying... we don't hate the Euro in Portugal. YOU may hate it, but the vast majority in this country is pro-Euro. Are you a communist (PCP) or left radical (Bloco)? And yes, Europe and the € deserve a chance to get out of this mess. Politicians with no clue about economics and finantial speculators created this situation. Now, he have to fix it. If the Euro fails the World finance will suffer. No doubt about that.

    December 15, 2011 at 5:32 pm |
  17. Darth Cynic

    Oooohh another cutting edge article from CNN on Europe's current woes!

    I wonder what angle they might be taking?

    Actually I'm being silly, of course it's another bash at the Euro and the EU which is all this increasingly partisan "news" outfit seems capable of. If the head of the Bank of England voices his Euro-skepticism we an be guaranteed you boys will run it. When Cameron was forgetting what the EU is about and looking after nationalistic interests this site ran more than one article over it. If it makes the Euro look bad or is another anti-Europe opinion CNN will have it. Yet curiously absent was the fallout over Cameron's unilateral actions, nothing about his coalition partner Mr Clegg's dissatisfaction that I ever saw.

    Are you going to go back to reporting the news as independently as is possible or you going down the Fox News path of pretending that right-wing propaganda equals news?

    December 15, 2011 at 6:17 pm |
  18. Darth Cynic

    "Paul Johnston, PhD Economics"

    Because clearly if you type PhD you must therefore actually have one.

    However, I don't think a PhD carrying person would type in all-caps as is tends to look rather poor.

    December 15, 2011 at 6:20 pm |
  19. Sebastian

    It is so obvious that "Anglo-Saxon" propaganda is on its way now.
    Some countries in continental Europe do have some economical problems, true.
    As a matter of fact, the USA and little "lap dog", England, have much larger economical problems, and huge social disparity. Its a clash of two economic views... I hope that Europe will prevail!

    December 15, 2011 at 7:28 pm |
  20. Ivan The Terrible

    Unfortunately the euro is like the people that use it ,weak.As is always the case where the law of the jungle remains the sole arbiter the euro will ultimately be destroyed and be forever beholden to the mighty American dollar,thus preserving the status quo

    December 15, 2011 at 8:14 pm |
  21. Ivan The Terrible

    I can see the day coming again where europe begs Britain and America to rescue them from the germans and they ultimately have to march on through to berlin!

    December 15, 2011 at 8:18 pm |
  22. chris

    I heard from Chinese friends that they believe that US and UK are trying to destroy the EURO, they will come with any angle to print critical storied and keep the momentum of negative news. The world is growing, say china has 13 growth, they paint it as a disaster. Every article is painted in negative light.

    December 15, 2011 at 11:47 pm |
  23. John

    1939 hitler tried to conquer Europe by force and he fail miserably , 2011 once again a german woman and a French clown who want to submit Europe into their economic superiority , the world is full of greed , cheats , and liars,beware!!!

    December 16, 2011 at 12:38 am |
  24. robert_s

    Actually, Hitler did conquer pretty much all of Europe. It was trying to conquer Asia and Africa where he failed. Just to put history straight.

    December 16, 2011 at 6:44 am |
  25. Gareth

    Robert,

    As a point of fact and to "put history straight", Hitler never made serious inroads into Asia and he was never committed to conquering Africa – he would never have got involved there had he not he been bailing out the Italians. Hitler's battleground was Europe – that is where he lost the war, so what you refer to as his conquest was more in the way of a short-lived occupation. Incidentally, Britain as part of Europe was one of his principal opponents – and so was European Russia

    December 16, 2011 at 8:33 am |
  26. PJL

    They are headed in the wrong direction. They shouldn't be binding themselves more tightly to gether, they should be making the financial connections between the countries looser. They should be making it easier to compartmentalize crises, no increasing the speed at which they can infect other countries.

    December 19, 2011 at 11:17 pm |

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