EU Announces New TreatyDec 9 2011
After staying up all night, the EU finally came out of their summit with a new treaty, ensuring stricter budget rules. The treaty will require European countries to have balanced budgets that will be submitted to the European Commission, and “automated correction mechanisms” will be put in place if the rules are broken.
Although a deal did come out of the summit as hoped, the response has been lukewarm and the United Kingdom refused to sign on, along with Hungary, Czech Republic and Sweden.
As the markets weren’t affected by the release of this new treaty, mortgage rates continue to remain steady.