EU nations back tougher sanctions to combat debt (EU backs sanctioning itself to prevent more debt?)

AP on Yahoo ^ | 5/21/10 | Aoife White - ap

[NormsRevenge]

BRUSSELS – European Union finance ministers backed tougher sanctions to prevent them running up too much debt in the hopes of winning back market confidence and getting a handle on the debt crisis that is threatening the euro.

The European Union's president Herman Van Rompuy said the talks Friday showed that "it was very clear that there was a broad consensus on the principle of having sanctions" — both financial and political.

Current limits on debt and deficits are backed up on paper by heavy fines, which have never been imposed — effectively allowing Greece and others to ignore them and build up massive debt.

Van Rompuy gave no details of new sanctions because officials from the EU's 27 governments, the European Central Bank and the European Commission are only starting work on changes to widely flouted EU budget rules. EU leaders are due to decide on long-term reforms at an October summit.

[NormsRevenge]

Brilliant!

[sickoflibs]

So they loan Greece even more money to pay the fines?

Dont they have more debt than they can pay?

[KarlInOhio]

Likely as successful as an AA meeting at an ouzo bar.

[colorado tanker]

[Red Dog #1]

"Go to your room and spank yourself."

Homer Simpson

[SunkenCiv]

Note: this topic is from May 21, 2010 .

Blast from the Past!

Thanks NormsRevenge.

European Union finance ministers backed tougher sanctions to prevent them running up too much debt in the hopes of winning back market confidence and getting a handle on the debt crisis that is threatening the euro.