Currency crisis means new ills for Maastricht; as sovereignty concerns arise, the treaty's promise is dimmed

Article Abstract:

The Maastricht Treaty is jeopardized both by sovereignty concerns and by the recession which has arisen in Europe since negotiations on the treaty began. Most European countries have higher unemployment, large budget deficits, high interest rates and lower growth in gross domestic product. These economic conditions have severely impeded the European Monetary System (EMS) and forced finance ministers to settle for greater currency fluctuation. Only Luxembourg satisfies the economic criteria for admission to the EMS. Modification of the treaty may be its only chance for implementation.

European federation

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Maastricht vote jolts E.C. bar; unity in doubt

Article Abstract:

The Treaty of Maastricht was approved in France, but the size of the 'no' vote puts the inevitability of a unified Europe in doubt. This treaty would transfer the politicians' authority to set deficit spending levels and interest rates to a European central bank. Deficit spending and low interest rates are the usual macroeconomic tools for stimulating economies in recession, and the treaty would take away sovereign control of these tools. Many of the smaller European countries fear undue control by Germany, Holland and Luxembourg, the three strongest European Community countries.

Economic policy, European Union

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Tactic fails for foreign lenders; liability issue

Article Abstract:

Foreign banks which invested in the US during the 1980s have born the blows of the recession right along with domestic institutions. Some have used lender liability theories in an attempt to pass business losses from unsuccessful transactions to lead banks, claiming that they neglected to disclose the riskiness of the transaction. So far, the courts have looked askance at these efforts, telling the foreign participating lenders that they merit no more protection than any other lender having entered into a contract, absent a written agreement to the contrary.

Laws, regulations and rules, International aspects, International banking, Lender liability

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