Like a well-financed and politically powerful parent, the European Union has agreed to implement tougher rules for euro zone countries that overspend and over-borrow to “deter bad budgetary behavior” that could lead the currency into yet another crisis. —JCL
EU leaders have agreed on tougher rules for nations whose overspending threatens Europe’s single currency and risks triggering another financial crisis.
Herman Van Rompuy, the EU president, said on Friday that the bloc was planning for a “robust and credible permanent crisis mechanism to safeguard the stability of the euro zone as a whole”.
The point of the economic governance measures was to “deter bad budgetary behaviour by fining countries that run excessive deficits and debts much earlier than now. Also their budgets will come under review by the EU”, he said.