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The timetable for short-, medium- and long-term actions emphasises the huge degree of further economic and political integration that is likely to be advocated by the final HvR proposals. Step One seems well underway as agreement on the economic governance two-pack seems imminent, but the next steps in the chain of events may be much less certain as Member States should “strive” for agreement on the SSM by year-end and agreement on the budget is simply assumed.
Thereafter, the timetable calls for a medium-term “strengthening of the collective conduct of budgetary and economic policy - including tax and employment policy – would go hand-in-hand with an enhanced fiscal capacity”. Eurobills are included in this time frame – probably due to the assumption that a Treaty change would be needed. 'Bishop Bills' would come within this framework but could be brought into operation with a treaty-style agreement amongst only the participating states, rather than a full-blown EU treaty change that would require unanimity.
The longer-term plans call for an “adequate pooling of sovereignty, responsibility and solidarity at the European level”.
(Press release link)
Extract from Executive Summary
The common issuance by euro area Member States of so-called eurobills - short-term government debt with a maturity of up to 1 to 2 years - could constitute a tool against the present fragmentation, reducing the negative feedback loop between sovereigns and banks, while limiting moral hazard. The introduction of such a common debt instrument would require a closer coordination and supervision of Member States' debt management in order to ensure sustainable and efficient national budgetary policies.
The monitoring and managing function for the fiscal capacity and other instruments should be provided by an EMU Treasury within the Commission. The further strengthening of policy coordination and enhancement of the fiscal capacity would initially start under secondary law, but would require Treaty changes at some point.
The creation of a Debt Redemption Fund and the common issuance of short-term government debt would require Treaty changes.