Europe ‘Waters Down’ Fiscal Pact With Sanction Rules, Welt Says

European Union leaders are planning to sign an agreement at a summit starting today that “waters down” the sanctions process against countries that breach fiscal rules, Welt said, citing the agreement.

The agreement states that only countries have the right to file a suit and not independent institutions such as the European Union Commission, the German newspaper reported. The country that holds the European Council presidency as well as its predecessor and successor are supposed to sue, Welt said.

While the rules stipulate which countries are supposed to take debt violators to court, there are various exemptions from the obligation, the newspaper said.

To contact the reporter on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net