EU summit agrees to German plan for austerity straitjacket

[MNBrewer]

http://wsws.org/articles/2012/feb2012/euro-f01.shtml

According to the plan, all 17 euro zone states will be required to insert a so-called “debt brake” into their constitutions laying down strict limits to government borrowing. The ten EU member states that do not use the common European currency will have the option to adopt the debt brake measure.

Governments will essentially be denied the possibility of ameliorating the deepening social crisis through fiscal measures. Instead, in order to ensure the repayment of their debts to the banks, they will be forced to take draconian deficit reduction measures, primarily by slashing spending on welfare provisions, education, housing, infrastructure, public sector employment, pensions and health care.

Underlining the undemocratic nature of the plan, German Chancellor Angela Merkel declared, "The debt brakes will be binding and valid forever. Never will you be able to change them through a parliamentary majority."