EU edges towards tougher economic rules

Article reports that following the European Council, Brussels, 17 June 2010 Eurozone governments were moving gingerly towards an enhanced system of economic governance, uncertain how far they ought to limit national sovereignty in the name of saving their monetary union.

Yet the most difficult decisions remain, and some centre on the time-honoured question of whether European governments will ever have the nerve to punish each other for not obeying economic rules.

The deadline for settling these matters is October 2010, when Herman Van Rompuy, EU President, will present national leaders with his final report on how to improve economic policymaking in the 16-nation euro area.

Perhaps the most fundamental question is whether the new system will require changes to the Treaty of Lisbon, which came into force in December 2009 after eight years of negotiations and political strife.

ESO: Background information: EU to publish bank ‘stress tests’ http://www.europeansources.info/record/eu-to-publish-bank-stress-tests-shared-sense-of-direction-at-eu-summit/

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