EU leaders ended a two-day summit on how to modify the "Lisbon Treaty" agreed to establish a permanent mechanism to help lay the initial legal basis. Meanwhile, in order to prevent and respond to possible future debt crisis, 27 leaders also outlined the mechanism of this general framework of permanent relief, that a resolute determination to defend the stability of the euro area. However, this fledgling ability to never never troubles coping mechanisms, so sit back and relax since the debt crisis facing the European Union, are still unknown.Embryonic form of permanent relief mechanismThe end of the 16th the first day of the summit, EU leaders agreed that a simplified procedure based on the "Lisbon Treaty" limited changes include a paragraph in the treaty content, namely, "a member of the euro as their currency to the establishment of a stable set of mechanisms, forced, in order to maintain the overall stability of the euro area is activated. According to the mechanism required to provide any financial support, must be strict conditions attached. "Accordance with the relevant procedures, the modified plan will take effect in January 2013. By then, the permanent relief mechanism will have a solid legal basis for future assistance to other euro area member states will abide, and the relief mechanism of the leaders of the largest investment Fangde Guo, they may also have doubts about the legality of the aid are accountable to domestic constituencies.According to the agreement reached by leaders of the European Union, called "European stability mechanism" will be a permanent relief mechanism of 750 billion euros of existing mechanisms for template design for interim relief, the International Monetary Fund (IMF) will also participate, but will be strictly IMF's practice with reference to the operation. Second, this mechanism would be to provide assistance requested by Member States, and subject to unanimous approval of the euro area member states.

Third, assistance can only be a last resort, that is, only when a crisis threatens the euro-zone countries when the overall stability of the euro area, when forced to start this mechanism. Fourth, the relief will be strict conditions attached, as Greece and Ireland, as the two countries must come up with a satisfactory program of fiscal austerity and economic reform. Finally, if the euro-zone countries need debt restructuring, permanent relief mechanism will allow the euro area sovereign bonds held by private investors to take some losses, but how the decision will be based on the case, but this is not a prerequisite for providing assistance.Political risks remainSince the debt crisis began, the EU market, pressing harder and harder in the first introduced under the 1100 billion euro rescue package support for Greece, then through difficult negotiations and put a huge 750 billion euros of the rescue mechanism, as a possible step followed the other Greek euro area member states to provide support, but this mechanism will be temporary relief expires in June 2013. The face of the debt crisis intensified, to establish a permanent mechanism will undoubtedly help the debt crisis facing the risk of Member States to provide a solid backing.

However, EU leaders approved the "Lisbon Treaty" to amend the proposal, there are also political risks.The amendment procedure under the Treaty, the EU leaders agreed on the "Lisbon Treaty" to modifications, the program needed by the Member States approved in accordance with its internal procedures, but also need to modify the program also has legislative power in Europe Parliament's approval. The history of integration in the EU, member states have repeatedly rejected there was a precedent for the treaty, such as the present "Lisbon Treaty" in the first referendum held in Ireland had gone down in defeat, but at the second the following year only be approved in the referendum.In the 16th news conference after the summit, the President of the Council of Europe permanent Herman Van Rompuy said the program does not involve changes to the Low Cut Women's Socks factory EU from the member countries the issue of transfer of power, so "far as he knew," countries do not need to referendum to approve changes to the program. EU leaders said the new program is expected to change in January 2013 to complete all the examination and approval procedures, will be established after June 2013 laid the legal basis for European stability mechanism.

But is the same as EU leaders optimistic vision remains to be seen. In the economic recovery is weak and the European sovereign debt crisis, the European countries are to tighten fiscal spending cuts, permanent relief mechanism also need to re-pocket the euro zone countries, the leaders of member countries are expected as the overall situation as there are variables .Details determine success or failureThe summit, EU leaders only outlines the general framework of the permanent relief mechanism, and to hold the next euro zone finance ministers to continue to help the specific details of the mechanism discussed. As the Euro group president, Luxembourg Prime Minister Jean - Claude Juncker a relief mechanism in the discussion after the finance ministers said, the devil always in the details. Rescue mechanism to finalize all the details of the future is still placed in front of the big problems of finance ministers.First of all, the future need for more large-scale relief mechanism was sufficient to reveal all the details for the member countries in crisis, is one of the most practical problems. Temporary relief for the present mechanism, the attitude of various countries have been inconsistent, Belgium and the IMF agreed that the EU now need to expand the size of the temporary relief mechanism, but for most of the German pocket relief mechanism is firmly opposed. In addition, the financial crunch in the euro area Member States of the situation, how to share the funds needed relief mechanism also needs coordination.Second, the EU leaders decided that the future permanent relief mechanism must be a last resort to start, and will attach stringent conditions.

Greece and Ireland in the process of rescue, the two did not want to transfer sovereignty over fiscal policy, but has been reluctant to seek help, and ultimately lead to market panic intensified, contributing to the crisis spread. How to prevent future bailouts mechanisms also need to consider this risk.Again, for the current interim relief fund, some members suggested a more flexible operation, for example, members can be used to buy treasury bonds to provide financing facilitation. Relief mechanism is also facing the future of how to increase operational flexibility and efficiency.EU leaders in the framework of a permanent agreement assistance mechanisms, the international credit rating agency Moody's Investors Service 17 will be long-term sovereign credit rating downgrade the Irish had five levels, from Aa2 down to Baa1, the rating outlook as negative, and Spain earlier this week has also been a warning may be downgraded. Therefore, the 750 billion euros of funding is sufficient to cope with the temporary relief may further spread of the crisis, the future of European stability mechanism in June 2013 whether a smooth convergence, in response to sovereign debt crises of the defense build a strong enough remains to be seen.