EU leaders in Brussels today signed a fiscal pact which commits the signatory countries to rein in public spending and run low levels of government debt.
The Treaty on Stability, Coordination and Governance has governments pledging to keep their deficits down to less than 0.5 percent of their gross domestic product. It was signed by 25 countries of the European Union.
“The restoration of confidence in the future of the Eurozone will lead to economic growth and jobs,” said President of the European Council, Herman Van Rompuy. “This is our ultimate objective. The targets on deficits and debts are intermediate targets, no aim in itself.”
European Commission President José Manuel Barroso stressed that in the eyes of the world what is “at stake is the very credibility of the euro area and of Europe as a whole: its ability to deliver sustainable fiscal consolidation, growth and employment.”
During their two-day summit, EU leaders also discussed budgetary and economic strategies to stimulate growth and increase competitiveness in the region.
President Van Rompuy was elected as President of the European Council for a second mandate. The leaders also appointed him to be President of euro zone summits.