EU considers amending treaty for bailouts

BRUSSELS, Oct. 29 (UPI) -- The European Union treaty will need minor amendments to set up a permanent bailout fund for member states, EU leaders said Friday.

"Today we took important decisions to strengthen the euro," European Council President Herman Van Rompuy said at a Friday news conference in Brussels, the EUObserver reported.

France and Germany have demanded a major overhaul of EU rules only a year after the Lisbon Treaty went into effect, but the draft conclusions of a two-day summit called for "a limited treaty change."

Germany has been concerned that a permanent bailout mechanism could violate existing treaty rules. German public opinion also opposes paying the bill for future debt crises as in Greece.

Clear default procedures would tell investors that they, rather than taxpayers alone, would be responsible for at least part of the costs of a national bankruptcy.

Van Rompuy is to explore whether such a limited change can be achieved by EU leaders without having to call a full conference involving negotiations among governments, consultations with the European Parliament and the participation of the European Commission. Leaders also fear sending the issue to national parliaments or, worse yet, referendums.