Economic Policy Coordination (Communication)

The reform of the Stability and Growth Pact is reasonable, though not sufficient. The Commission should have proposed the requirement that sanctions be imposed automatically. Moreover, the Commission should have proposed an insolvency proceeding for euro-zone countries. If these two measures were implemented consistently, the propagated coordination of economic policies would become superfluous. The coordination of economic policies will lead to a levelling of the reforms and budgetary consolidation to mediocrity in Member States.