The new rules maintain the limits of the deficit at 3 per cent and the debt at 60 per cent of the GDP, limit the level of public spending that is not compensated for by revenues, plan for a certain flexibility in times of crisis and the improvement of the long term budgetary framework which is enhanced by a budgetary pact between 25 EU Members (except for the UK and the Czech Republic).
There will be stricter control, notably in the eurozone, thanks to better prevention, an early warning system and quicker, more effective sanctions that are easier to implement.
"The reforms undertaken over the last three years are unprecedented, but the crisis has demonstrated how much the interdependence of our economies has increased since the foundation of the Economic and Monetary Union. This also shows that we require more fundamental changes to the economic governance architecture to restore confidence in the achievements of the Single Market and the single currency.
"The European Commission's ideas for the future are set out in the Blueprint on a Deep and Genuine Economic and Monetary Union, published on 28 November 2012 (see IP/12/1272). The Blueprint sets out how to build on the architecture we have, step-by-step, in the coming months and years.
"The Commission has already developed its ideas on a framework for the ex-ante coordination of major structural reforms and on a convergence and competitiveness instrument to encourage and support Member States that are implementing difficult reforms (see IP/13/248). Further proposals will be made in the course of 2013."
Press release
© European Commission
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