FRANKFURT (MNI) – The German government is drafting a plan to
stabilize the single-currency area, the business daily Handelsblatt
reported Wednesday, citing an internal government document.
The highlights of the program include drastically tougher sanctions
than those currently in force for violating the Eurozone’s fiscal-policy
rules.
“Euro member states that do not stick to the guidelines of deficit
reduction should temporarily receive no further EU structural funds,”
the proposal says.
It also calls for a removal of voting rights on the European
Council for at least one year for countries that “grossly” violate the
rules of the currency union.
The federal government also wants stability programs of member
states to be subject to strict and independent examination either by the
European Central Bank or a group of independent research institutes.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
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