The battle was over how clearly to defend the exceptions, and where to set the numbers. Several months ago, Germany demanded that only countries that suffered a recession where GDP plunged by at least two percent would be eligible for exceptions, though it later relaxed that demand to declines of 1.5 percent. But, in a carefully nuanced exercise in fudging, the plan also gives countries a chance to plead for a reprieve if their GDP drops by three-quarters of a percentage point. As a tradeoff to Germany for allowing more flexibility, the plan also calls on the European Council to publicly alert countries when they are liable for penalties, in hopes of shaming them into cleaning up their policies. Though it was clear here today that many nerves were still raw and that Europe is far from bathing in the warm water of mutual trust, officials from all sides pronounced themselves satisfied with the compromise.
Market analysts remain skeptical, however.