The European Union economic and financial affairs council (namely the European Union finance ministers' meeting) 8 after tense discussion, through before the proposed by the European commission to strengthen financial regulation of the financial "six Suggestions", and change "the stability and growth pact" resolution.

The announcement of the council, said the "six Suggestions" is at the council meeting on October 4, based on the agreement, with the European parliament, after consultation with the compromise reached. The European parliament has in September 28 through the "six legislative proposals."

That announcement, the six recommendations will help strengthen the coordination necessary to avoid economic and fiscal excessive unbalanced appear, and helps to ensure the sustainability of public finances. At the same time these Suggestions will be useful for the eurozone member countries of the budget constraints put more big, and members of the economic policy more extensive oversight.

Notice also introduced to "the stability and growth pact" revision situation. Modify content focused on prevention of the convention and correction function, namely, prevention and correct the problem of much bigger fiscal deficit. The new resolution introduced the debt of the judgment standard clause requiring debt when member states gross domestic product (GDP) ratio over 60% even after its deficit below 3% proportion, still must be a debt to below 60%.

1997 years formal implementation "the stability and growth pact" main purpose is the restraint members about fiscal deficits and respect the standard of public debt, deficit that is not more than 3% of GDP, public debt can't more than 60% of GDP.

In order to strengthen the convention's correction function, the new resolution also introduced some sanctions. Once a member is determined for fiscal deficit is too large, the country will be required to pay 0.2% of GDP of have no interest margin. And when not subject to the country by the council correction deficit problem advice, the margin will automatically become a fine. And if the country is to continue to not obey, can according to eu related to the intensity of the treaty increase punishment (maximum is 0.5% of GDP).

In order to better implement the resolution, the council also decided to adopt the "reverse most" law, that is, when the European commission for failing to comply with a member of the convention put forward after the sanctions, the sanctions will automatically take effect, unless by majority vote by the council veto.

 
According to the agreement, in economic policy regulatory, except to members of the budget policy to monitor the, will be to their economic policies to monitor. Detailed practice is to establish a economic indicators of economic "scoreboards" of the early warning mechanism balance not, and the view of the different countries the situation of special quantitative analysis system. When are recognized as "excessive imbalances", the council will ask members to correct within a time limit. When the council members think taken appropriate measures, the program will be suspended or officially ended, and when that member states not to take the appropriate measures, it may impose on members of the GDP0.1 % fines, and can only to "reverse most" way suspended.



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