FISCAL COMPACT : NO SUNSET CLAUSE', 15 RATIFICATIONS NEEDED FOR ENTRY INTO FORCE.

• Position: Brief article

The latest draft of the International agreement on a reinforced economic union', seen by Europolitics and due to be discussed among member states, European Parliament and Commission representatives on 6 January, does not include a sunset clause' as called for by MEPs. The agreement, which contains provisions for a balanced budget rule and sanctions for eurozone countries that flout deficit limits, will come into force once fifteen - instead of nine as initially foreseen - eurozone countries have ratified it, according to the latest draft. It will only apply to the 17 single currency members.

To make sure agreements outside the institutional framework do not become the norm, deputies called for a clause stating that member states should either attempt to bring the agreement under primary EU law after five years or commit to rendering it obsolete after seven years. The latest draft of the agreement incorporates the former demand but leaves out the latter. According to a...