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.