Brussels targets spendthrift states

Report of the main issues raised during a public hearing on the Greek fiscal crisis organised by the EP's Economic and Monetary Affairs Committee on the 14 April 2010. In the first part of the hearing MEPs focused on the next steps in economic surveillance and governance in the EU and how to improve the reliability of national statistics.

Olli Rehn, European Commissioner for economic and monetary affairs called for new rules for making economic governance more binding.

The FT articles suggests that the European Commission is calling for 'more teeth' to punish member states that violate its fiscal rules, including the possible withholding of regional development funds.

The issues were to be discussed by European Union Ffinance Ministers when they met in Madrid on the 16 April 2010, informing more detailed proposals that Mr Rehn was expected to present on the 12 May 2010.

European Parliament: Press Release, 14.4.10: MEPs hear views of leading figures on the Greek fiscal crisis http://www.europarl.europa.eu/news/expert/infopress_page/042-72557-102-04-16-907-20100412IPR72554-12-04-2010-2010-false/default_en.htm

Spiegel Online International, 14.4.10: European Commissioner Wants Greater Say in National Budgets http://www.spiegel.de/international/europe/0,1518,688915,00.html

Deutsche Welle, 14.4.10: EU plans to "sharpen teeth" and punish overspending members http://www.dw-world.de/dw/article/0,,5466293,00.html

EurActiv, 15.4.10: EU threatens regional aid cuts for budget offenders http://www.euractiv.com/en/regional-policy/eu-threatens-regional-aid-cuts-for-budget-offenders-news-445970

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