EC to refine key budget rules, insisting that no change will take place

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The European Commission wants to restructure the European Union’s complex rules governing economic policy-making, but won’t change the two key laws that sharpened budget policy control during the debt crisis, a top official responsible for the euro zone said.
The European Commission wants to restructure the European Union’s complex rules governing economic policy-making, but won’t change the two key laws that sharpened budget policy control during the debt crisis, a top official responsible for the euro zone said. Over the past four years the EU has come up with new ways to organise the fiscal policy, set limits on borrowing and push for structural reforms to prevent another debt crisis and limit the chances of an economic crisis originating in Europe.

European Commission Vice President Valdis Dombrovskis said he would work to refine the multiple pieces of legislation and try to transform more of the laws only agreed on between euro zone governments into EU-wide legislation. ‘We need to look to some reform of procedures that were created during the crisis and improve on these; such as streamlining the European Semester’.

They also give the Commission the right to review draft national budgets and the power to point out to EU countries what appears to be wrong with their economies in general, with proposed remedies or possible fines.

‘The general assessment is that these regulations have helped strengthen the macroeconomic governance of the euro zone, that they were helpful in restoring financial stability in the crisis and that they allow for improved macroeconomic policy coordination,’ Mr Dombrovskis stated.