EU heads for battle over new budget rules

The EcoFin Council agreed on the 15 March 2011 a general approach on a package of legislative proposals aimed at strengthening economic governance in the EU – and more specifically in the euro area – as part of the EU's response to the challenges highlighted by the recent turmoil on sovereign debt markets.

The agreement would enable the EU Presidency to start negotiations with the European Parliament, with the aim of reaching an overall agreement in June 2011, thus respecting the timetable set by the European Council.

However, Jean-Claude Trichet, President of the European Central Bank, called the measures 'insufficient' and national governments were said to be heading for a battle with the European Parliament which was determined to make the rules tougher.

EUObserver, 16.3.11: EU ushers in 'silent revolution' in control of national economic policies http://euobserver.com/9/31993

ESO: Background information: Italy slams Paris and Berlin for ‘pre-cooked’ deals http://www.europeansources.info/record/italy-slams-paris-and-berlin-for-pre-cooked-deals/

Council of the European Union: Press Release: PRES/11/62: EcoFin Council, Brussels, 15.3.11 http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/119938.pdf

EurActiv, 16.3.11: EU countries to face sanctions for high debts http://www.euractiv.com/euro-finance/countries-face-sanctions-high-debts-news-503134

Council of the European Union: Press Release: PRES/11/63: Council reaches agreement on measures to strengthen economic governance http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ecofin/119888.pdf

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