Denmark raises objection to fiscal compact treaty

DENMARK, which has just taken over the helm of the EU for six months, says it could object to the fiscal compact treaty if Germany insists that it changes its constitution.

Fiscal compact signatories will have to introduce into domestic law the golden rule on achieving a balanced budget and limit deficits in “national binding provisions of a constitutional or equivalent nature”, according to early drafts of the proposed treaty.

In the latest draft, this must be done in each country’s constitution or equivalent, and could be a key issue in deciding if Ireland must hold a referendum.