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BRUSSELS, December 9 (Itar-Tass) —— European Union leaders agreed on key provisions of an agreement to tighten budget and tax rules to balance proceeds and expenditure, a diplomatic source said on Thursday.
“There is a deal between leaders on the new fiscal compact,” said the EU official adding legal issues are yet to be discussed.
It has been agreed that all EU countries should include the requirement to maintain balanced budgets into their constitutions. In case the budget deficit exceeds three percent of the GDP the violator-country will be automatically fined unless sanctions are blocked by a qualified majority or three-quarters of member states.
Experts believe this would be a compromise between the French-German anti-crisis plan and proposals drafted for the summit by EU Council President Herman Van Rompuy.