PARIS (MNI) – France’s lower house of parliament late Tuesday
ratified the EU accord for a permanent rescue fund, the European
Stability Mechanism, with a lending capacity of E500 billion.
Given the government’s comfortable majority in the National
Assembly, the outcome was not in doubt. The only uncertainty was how the
opposition Socialist Party would vote.
While the Socialists favor the creation of bigger firewalls to
contain the sovereign debt crisis, many on the left of the party reject
the parallel inter-governmental treaty, known as the “Fiscal Compact,”
establishing tougher controls on national budgets with near-automatic
sanctions against excessive deficits.
Despite appeals from more radical Leftist Front lawmakers, the
Socialists decided to abstain from the vote, which suggests they may do
the same when the bill reaches the upper house, where they now have a
majority.
Socialist presidential candidate Francois Hollande has pledged to
seek an amendment to the Fiscal Compact to favor economic growth and job
creation through EU investment projects financed by eurobonds.
Ahead of the vote, Prime Minister Francois Fillon said the rescue
fund was “the only way to fight against speculative attacks” against the
euro, reminding that alongside the austerity measures imposed on bailout
countries, taxpayers would have to make sacrifices in the interest of
European “solidarity.”
France’s commitment to the fund amounts to E142.7 billion and its
cash contribution E16.3 billion.
Fillon warned the Socialists that their refusal to back the fund
would make the Eurozone more fragile.
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