Select member states announce new austerity measures
A two-day summit in Brussels saw fresh cuts and restructuring announced by a series of member states who wished to "go beyond" that which has been agreed within the fresh euro-plus pact.
"A number of colleagues already announced this morning their concrete commitments under the pact," European Council President Herman Van Rompuy told reporters at the end of the summit. "They are: Spain, France, Belgium and Germany."
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It is thought that Slovakia was also preparing further measures.
But eyes were in particular cast in the direction of Madrid to see what new moves will be enacted to stave off contagion from Portugal, which is widely expected to become the third country to apply for a bail-out.
Spanish Prime Minister Jose Luis Rodriguez Zapatero told reporters he had already spoken to trade unions about the new measures and is set to discuss the matter with employers on Saturday and subsequently other political parties.
Included amongst the moves will be an adaptation of rules relating to collective bargaining, a "rigorous" review of government decision-making regarding competitiveness that will be presented to the EU Council of Ministers on 1 April, and a widening of access to vocational education with an aim to boosting productivity.
Zapatero said that as a result of existing restructuring and cuts as well as the fresh measures, "We have set the conditions to ensure that the situation in Portugal will not deliver any contagion effect to Spain."
Separately, Portugal's caretaker prime minister, Jose Socrates said that he does not want to see Lisbon lose sovereignty over decision-making the way that Athens and Dublin have as a result of their bail-outs.
"I have seen what happened to Greece and Ireland and do not want the same happening to my country. Portugal will manage on its own, it will not require a bail-out," he said.
"This domino of countries asking for a bail-out one after the other has to end. The ball stops here, with Portugal." restructuring and cuts as well as the fresh measures, "We have set the conditions to ensure that the situation in Portugal will not deliver any contagion effect to Spain."
Separately, Portugal's caretaker prime minister, Jose Socrates said that he does not want to see Lisbon lose sovereignty over decision-making the way that Athens and Dublin have as a result of their bail-outs.
"I have seen what happened to Greece and Ireland and do not want the same happening to my country. Portugal will manage on its own, it will not require a bail-out," he said.
"This domino of countries asking for a bail-out one after the other has to end. The ball stops here, with Portugal."
Hungary
Meanwhile one of the more surprising outcomes of the summit has been Hungary's resistance to signing on to the augmented pact despite the country currently holding the EU's six-month rotating presidency.
Prime minister Viktor Orban has stressed that his opposition to joining the euro-plus-pact lies with its proposals around tax policy, noting that a number of other countries also have problems with a Common Consolidated Corporate Tax Base (CCCTB), including Lithuania, Slovakia, Cyprus, Malta and the UK.
In refusing to sign on to the pact, Orban has crossed something of a Rubicon in the country's relations with the EU. Since joining the bloc, Budapest has always been frightened of a two-tier Europe and worked hard to stay at the heart of EU decision-making.
This is the first time that Hungary has decided not to sign on to new integration measures.