Luxembourg Parliament adopts Fiscal Compact
The Luxembourg Chamber of Deputies adopted (46 members voted for and 10 against) The Treaty on Stability, Coordination and Governance in the Economic and Monetary Union – the so called Fiscal Compact. It had been signed on 2 March 2012 and is a new stricter version of the previous Stability and Growth Pact. It makes the signer-countries stick to a tougher fiscal discipline and conduct a responsible economic policy.
It is a mechanism to combat the sovereign debt crisis which affected several EU states, notably, Greece, Ireland, Portugal, Spain and Italy.
Ratifying member states are required to have enacted laws requiring their national budgets to be in balance or in surplus – the so called Balanced budget (or simply golden) rule.