The European Commission is set to unveil a new strict proposal this Wednesday which could lead to member states having their EU payments withheld if they break the bloc’s Stability and Growth Pact. The new plan would allow the Commission to withhold farm payments, roughly 40 percent of the EU’s €120 billion annual budget, together with varying types of structural funds. A comprehensive list of tougher budgetary measures will be brought forward by the Commission this September.

El Pais reports that the Commission also wants private debt to be taken into account in disciplinary proceedings that are open to countries with excessive debt. The proposal could disproportionately affect some member states such as Spain, which has a private debt 61 percent above the European average.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s