The Capital Account Honey

This is Absolutely Delicious (She is also, but I am talking about this from the TELEGRAPH):

EU Treaty: new EU plan 'abuses power', say lawyers

The plan by France and Germany to build a separate fiscal union after Britain blocked changes to the European Union’s treaty is an “abuse of power”, according to confidential legal advice.

David Cameron warned countries planning to join France and Germany that they would not be allowed to use the EU’s summit venues and offices when holding meetings.

“Clearly, the institutions of the EU belong to the union, they belong to the 27. They are there to do the things that are in treaties, that we have all signed up to over the years,” the Prime Minister, said following the breakdown of negotiations in Brussels yesterday.

Legal advice seen by The Daily Telegraph warns that the breakaway group of 26 countries cannot use the EU institutions or change European treaties without Britain’s consent.

The advice was drawn up by senior officials and lawyers working for the Council of the EU, the service that advises governments on the legality of their decisions.

In an attempt to overcome the debt crisis by strengthening enforcement of the euro’s fiscal rules, the so-called Euro-Plus group will draw up its own treaty. But documents agreed at yesterday’s summit continue to mention “reinforcement” of existing eurozone rules that would require treaty change, and set out enforcement mechanisms to be policed by the EU’s courts and the European Commission.

“To do this is a 'detournement de pouvoir’ or 'abuse of power’ because it changes rules that were agreed by all 27 EU countries,” says the legal advice. “Moreover, any treaty at less than 27 cannot make use of the community

institutions if they changed the character of those institutions, and any use of the institutions has to be agreed by all.”

The controversy is expected to swamp the courts with litigation, including challenges from Britain.

“It is going to be a bonanza for lawyers and will create an even bigger backlog at the EU courts,” said a diplomat. “It’s not a good way to spend money and prioritise resources during a crisis.”

Officials have also noted that because the new pact will be outside binding EU treaties, sanctions against future fiscal offenders will be based on a “political declaration of intent”.

“These will have no legally binding character and could be revoked following the election of a new government. Is this really going impress the markets?” said an official.