By Citizen Reporter

Dar es Salaam. The member states of the European Union (EU) have finalised a treaty on stability,  co-ordination and governance in the economic and monetary union matters aimed at ending the current crisis.According to a statement by the EU office in Dar es Salaam yesterday,  the treaty will be signed by member states in March this year for legal enforcement in the case of noncompliance by any of the signatories.

“Today, we have taken major steps in the implementation of our overall strategy to fight the crisis: The Treaty on Stability, Co-ordination and Governance in the Economic and Monetary Union has been finalised. It will be signed in March,” reads the statement in part.

It also outlined arrangements being made on how the Court of Justice would handle cases of noncompliance, signifying a major step towards closer and irrevcable fiscal and economic integration and stronger governance in the eurozone.

Meanwhile, in last November the EU Representative to Tanzania, Ambassador Tim Clarke, ruled out the possibility of suspending aid to Tanzania in the wake of the eurozone crisis, saying that they were set to continue supporting development projects.

However, under the General Budget Support (GBS), the EU was yet to complete its commitments under the agreement signed in 2010.

The minister for Finance and Economic Affairs, Mr Musta Mkullo was quoted during the GBS discussions in November last year raising concern over the problem of delayed issuance of funds from donors.

Therefore, the treaty will significantly bolster the outlook for fiscal sustainability and euro area sovereign debt and enhance growth in the eurozone.

Stability Mechanism (ESM) is ready for signature, and the objective is that it enters into force in July 2012.
The statement further noted that: “As agreed in December, we will reassess in March the adequacy of resources under the EFSF and ESM. Concerning Greece, we note progress made in the negotiations with the private sector to reach an agreement in line with the parameters agreed upon in October,” the statement says.

Restoration of credibility requires that all political parties irrevocably commit to the new programme, the EU members said urging Finance ministers to take all necessary steps for the implementation of the PSI agreement and the adoption of the new programme, including prior actions, well in time for the launching of the PSI operation by mid-February.

“We recall that PSI in Greece is an exceptional and unique case.
We welcome the latest positive reviews of the Irish and Portuguese programmes which concluded that quantitative performance criteria and structural benchmarks have been met.”

EU members pledged that they would continue to provide support to countries under a programme until they have regained market access, provided they successfully implement their programmes.

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