EU summit adopts Fiscal Pact for European-wide austerity
The Fiscal Pact increases pressure on EU member states to cut government spending. It ensures that austerity policies are continued regardless of election results and changes of government. It effectively strips parliaments of their most important power, control over the budget, and deprives voters of any opportunity to influence fiscal policy. German Chancellor Angela Merkel described this profoundly undemocratic treaty, which came about largely on her initiative, as a “milestone in the history of the European Union.”