EU beefs up powers over state budgets

Report of decisions taken and conclusions adopted at an ECOFIN Council, Brussels, 21 February 2012.

The Council agreed a general approach on two draft regulations on economic governance

• a regulation for enhanced monitoring and assessment of draft budgetary plans of euro area member states, especially those subject to an excessive deficit procedure

• a regulation on enhanced surveillance of euro area member states that are experiencing severe financial disturbance or request financial assistance.

By these decisions EU Finance Ministers agreed on rules that will give the European Commission more powers to scrutinise eurozone countries’ budgets, even before they are approved by national parliaments.

Council of the European Union: Press Release< PRES/12/57: Economic and Financial Affairs, Brussels, 21.2.12 http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/128102.pdf

ESO: Background information: Commission's first Alert Mechanism Report: tackling macroeconomic imbalances in the EU http://www.europeansources.info/record/press-release-commissions-first-alert-mechanism-report-tackling-macroeconomic-imbalances-in-the-eu/

European Commission: : DG Economic and Financial Affairs: EU economic governance http://ec.europa.eu/economy_finance/economic_governance/index_en.htm

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