Brussels will today propose measures giving it more authority over the national budgets of eurozone states, including a requirement to submit tax and spending plans to European Union authorities before their national parliaments.
The proposals, obtained by the Financial Times, would also allow the European Commission, the EU’s executive arm, to send fiscal inspectors to eurozone capitals if it decides a country is “experiencing severe difficulties”.
The new regulations, to be unveiled alongside a report on creating commonly issued eurozone bonds, come at a time of mounting criticism that the EU is subverting national fiscal policymaking, including pushing for technocratic governments in Italy and Greece to implement economic reforms.
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