The other day I had an interesting discussion about the European Fiscal Compact and its Article 11 in particular:
With a view to benchmarking best practices and working towards a more closely coordinated economic policy, the Contracting Parties ensure that all major economic policy reforms that they plan to undertake will be discussed ex-ante and, where appropriate, coordinated among themselves. Such coordination shall involve the institutions of the European Union as required by European Union law.
As far as I read this, Article 11 puts an end to each signatory state’s sovereignty. If a country can no longer pass ‘major economic policy reforms’ without agreement by other states, this constitutes a significant lack of independence. However, my colleague argues Article 11 is (a) too vague and (b) does not differ too much from previous European agreements.
That did not set my mind at rest. So what do you think?
Swiss Economist 