The European Commission wants more power to enforce budget discipline, including the right to issue recommendations directly to member-states, European Monetary Affairs Commissioner Mr Pedro Solbes said yesterday.
At a time when the Commission is fighting a rearguard action to ensure European Union countries stick to their budget commitments, Mr Solbes urged refinements to the budget surveillance process to make it more credible and effective.
Among the steps, he recommended "looking at the possibility of the Commission sending a direct recommendation when the economic policy of a member-state is not compatible with the guidelines adopted at the European level".
Such a move could be followed by a recommendation by finance ministers but would prevent politicians from ignoring the EU executive's advice, he said in the French text of a speech.
He was addressing members of a European Parliament working group on economic governance issues for the Convention on the Future of Europe.
The last time the Commission's advice on budget deficit warnings was ignored was at the start of the year when Germany and Portugal escaped receiving an official reprimand.
"The experience at the beginning of the year shows that it is very difficult in practice for a finance minister to give a public warning to his neighbour at the Council table.
"The Commission has more freedom to speak out by its very nature. This would avoid unfortunate haggling, which affects the credibility of the economic policy co-ordination mechanisms."
Mr Solbes also called for a member-state that was in the docks for budget infractions to be excluded from voting on any warnings that might be issued. He argued that this would make the process fairer and more credible.
"Big states can more easily escape warnings than small ones because it is easier for them to form a coalition which would constitute a blocking minority," he said.
Mr Solbes also said the imminent enlargement of the EU warranted the creation of a euro-zone finance ministers' grouping distinct from the current informal gathering, which includes the European Central Bank.
He said this "Ecofin council for the euro zone" would have decision-making powers of the sort currently enjoyed only by the wider EU finance ministers' meeting.
"It would not mean the creation of a new council. . . but a simple change to the composition of the Ecofin council [of EU finance ministers\] when a decision had to be taken about a matter which was specifically to do with the euro zone," Mr Solbes added.
The euro zone also needed more authority when speaking on financial affairs on the international stage.
"The current situation is not satisfactory," Mr Solbes said. - (Reuters)
