European Union leaders signed a treaty in Brussels Friday, requiring member states to balance their budgets or face a fine.

The Treaty for Stability Coordination and Governance is a response to crushing debt that forced Greece, Portugal and Ireland to seek bailouts.

EU Council President Herman Van Rompuy was quoted as saying the treaty will bring “economic and monetary union” that supports itself.

The treaty was signed by 25 of the 27 European Union members, with Britain and the Czech Republic not signing the treaty.

The treaty will take effect only after EU leaders get it ratified in their respective countries.