Commission presents further economic governance proposals
23 November 2011
Under the new rules, the Commission will have greater surveillance powers so that the situation does not arise again whereby failings in one country endanger the stability of the euro area as a whole. (Includes link to Green Paper on Stability Bonds.)
Barroso presented the following key issues:
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that all euro area countries send their draft budget plans to the Commission, and at the same time publish them, by 15 October each year;
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that the Commission be able to request a new draft if it should have serious divergences between the draft budget and the Member State's Stability and Growth Pact commitments;
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that the Commission carry out closer monitoring of Member States under Excessive Deficit Procedure;
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that the Commission have the right to decide on enhanced surveillance of Member States facing severe threats to their financial stability and of the euro area as a whole;
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that the Council be able to recommend to a Member State that it request financial assistance;
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and that all euro area Member States be required to have in place independent fiscal councils and to prepare their budgets on the basis of independent forecasts.
Full speech
© European Commission
