Euro Agreement Is Illegal, Claim EU Lawyers

Legal services experts working within the European Union believe the deal struck in Thursday's EU summit is illegal, according to a leading German newspaper.

After intensive negotiations, only 23 of the 27 member states have agreed to implement new arrangements under the current European treaties in a bid to save the single currency. However, the British Prime Minister David Cameron vetoed the agreement, forcing the remaining states to agree a plan among only the 17 members of the single currency.

Now, German newspaper, The Spiegel, has reported legal services experts of the European Commission, the European Central Bank and the European Council, which represents all member states in Brussels, are all in agreement – that a treaty concluded only by the 17 euro-zone governments would be illegal.

According to their report, individual countries could only issue a "political declaration of intent," in which they determined how they would decide on the use of sanctions against budget offenders. But declarations would not be legally binding and could be revoked following the election of a new government in any of the member states.

The findings are significant to France, where the Socialist presidential candidate François Hollande has already announced he would not accept the deal.

The deal has also been challenged on its legality and operation by David Cameron, who questioned whom, in a segregated Europe, would have access and control over the EU's powerful administrative offices and bureaucratic facilities.

Meanwhile, Cameron has come under attack from the French President, who, in Friday's Le Monde newspaper, accused the British PM of wrongfully fighting the corner of London City investors.

"We were not able to accept [the British demands] because we consider quite the contrary - that a very large and substantial amount of the problems we are facing around the world are a result of lack of regulation of financial services and therefore can't have a waiver for the United Kingdom," Nicolas Sarkozy said.

The Labour Party have also hit out at the PM, with Douglas Alexander MP, Labour's Shadow Foreign Secretary, saying Mr Cameron's isolation in Europe was a sign of weakness not of strength.

"Britain this morning is more isolated than at any point in the 35 years of British membership of Europe.

"It is not in Britain's national interest for decisions to be taken without us even at the table and it's a direct result of David Cameron spending more time negotiating with his own backbenchers than with our European partners."

(DW)