For the European United Left / Nordic Green Left Group in the European Parliament, the fiscal deal agreed in Brussels will deepen the crisis and represents the anti-democratic institutionalization of austerity as default policy.

The treaty shifts power over budgets from national capitals to the Commission and establishes a "balanced budget" rule punishable by sanctions on member states. This will mean drastic cuts and extra pressure on public services and those who depend on them. Introducing conditionality on solidarity between member states, the agreement abandons the principle of equality between the 27 states and will create divisions which endanger not just the existence of the euro but the EU as a whole.

The GUE/NGL Group is seeking a reversal of this disastrous policy and for EU leaders to start working for growth, employment, democracy and solidarity.

The left also dismayed by the lack of any democratic consultation on the text and is calling for it to come to Parliament under normal procedures before being put to the people through referendums and popular consultation. Unfortunately, EU leaders have chosen a different path, one that our group cannot, and will not, support.

The outcome of the Summit will be debated by the European Parliament tomorrow afternoon.

GUE/NGL Press Contacts:

David Lundy +32 485 50 58 12

Gay Kavanagh +32 473 84 23 20

david.lundy@europarl.europa.eu

gabrielle.kavanagh@europarl.europa.eu

European United Left / Nordic Green Left

European Parliamentary Group

www.guengl.eu