Euro fiscal pact agreed

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This summit clearly belonged to Angela Merkel. The German chancellor on Monday managed to get 25 of the 27 EU countries to sign up to a new EU treaty that will create tougher fiscal rules to support the euro. At the same time, the EU , finally is getting serious about tackling youth unemployment.

Before getting France to commit to the new fiscal treaty, Merkel had to back off on a controversial German proposal to give the EU a veto on Greek government spending decisions made in Athens.

The Greek situation was only discussed in the margins of the summit. It will be the main topic of the next EU summit, on the first of March, giving all parties involved more time to sort out the problems.

The new EU treaty will be signed at the next summit in March. The two countries that are not going to sign the new EU fiscal treaty are the Czech Republic and the United Kingdom.

The European Parliament also wants a say in the new Treaty.

The stricter EU budget rules are supposed to come into force in July, after national parliaments in at least 12 of the 25 countries have ratified it. From then, EU governments can find themselves in court if they spend more money than they are supposed to.

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