Commission renews push for more say over deficit warnings

The European Commission has again argued it should have more say over deficit warnings for member states and that the countries…

The European Commission has again argued it should have more say over deficit warnings for member states and that the countries concerned should be barred from voting on such sanctions.

In its submission to the convention on the future of Europe, the commission also maintained its call for the euro group to become an entity with decision-making powers.

The commission said that at present it can only make recommendations regarding the broad economic policy guidelines and early warnings for member states.

This means member states can overturn the commission's recommendations, as they did earlier this year in the case of the mooted early warnings for Portugal and Germany.

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The commission said it should instead be able to make proposals, which would only be able to be amended with its agreement unless ministers unanimously decided to overrule them.

The commission said this change would enable it to ensure that all member states comply with the EU's rules and make for policy consistency.

In the interest of efficient decision-making, the member state targetted by an early warning should be excluded from voting on it.

"By definition, the member state concerned will generally be opposed to any such warning," the commission said.

It called for the establishment of an Ecofin Council for the euro zone, which would bring together finance ministers from euro group countries only.

It said the current decision-making mechanisms are not geared to the needs of the euro zone following enlargement of the EU's membership. At present, only the grouping of all 15 ministers can make decisions.

"Authorising the member states of the euro to decide among themselves on issues concerning their currency is a matter of straightforward common sense," it said.

Overall, the commission argued that its role needs strengthening.

PA