• The European Financial Crisis
  • December 19, 2011
  • Law Firm: Covington Burling LLP - Washington Office
  • On December 8 and 9, EU leaders held another summit as they seek to contain and resolve the ongoing European financial crisis. Leaders of all the euro zone member states, plus six of the ten non-euro member states, agreed in principle to join a new pact designed to calm the markets and address the infirmities that have become evident in the structure of the common currency. The pact includes an agreement to impose automatic sanctions on member states that violate EU fiscal guidelines, and to require that member states enact specified budgetary legislation. The summit also addressed additional contributions to the centralized bailout funds, touching on caps on such funds and potential requirements with respect to access to such funds.