Wall Street Journal
November 23, 2011
The European Commission proposed Wednesday significantly tighter controls over euro-zone members' budgets, alongside options for a common euro-zone bond market.
The proposals would have struggling governments submit to frequent reviews of their economic policies and accounts, and could see euro-zone governments effectively forced to seek financial assistance by a vote of their peers.
"To return to growth, member states need to raise their game when it comes to implementing their commitments to structural reforms, as well as embrace deeper integration for the euro area," said European Commission President José Manuel Barroso.
The commission said the deteriorating economic climate requires greater reform efforts from member states.
If a government doesn't comply with the EU's demands, they could be locked out of European Union budget funding, which can amount to billions of euros a year.
The Commission wants to make it mandatory that governments have independent fiscal councils in place to base their budgets on, as well as independent forecasts.
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Read the European Commission's paper
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