31 Jan, 2012
David Cameron has ‘legal concerns’ about the fiscal treaty that the UK, along with the Czech Republic, has refused to sign.
The two countries are the only two out of the 27 EU member states to refrain from agreeing to the treaty which aims to enforce budget discipline.
David Cameron has conveyed concerns about the legality of using EU institutions to enforce the treaty and that he would take action if it looked likely that the treaty was going to pose a threat to the interests of the UK.
The treaty, according to the BBC, is ‘much closer co-ordination of budget policy across the EU to prevent excessive debts accumulating’, and will give the European Court of Justice powers to impose fines on states that break the rules.
The BBC reported that David Cameron said of the treaty: “It’s good that the new treaty is absolutely explicit and clear that it cannot encroach on the competences of the EU.”
He added: “They must not take measures that in any way undermine the EU single market. We’ll be watching like a hawk.”