Euro area countries that are breaching our common rules should be called to account, with as little room for discretion and flexibility as possible. This implies less room for halting or suspending procedures and stricter deadlines. Behind this we argue in favour of stronger sanctions to encourage compliance.
This would require, on the one hand, a wider range of financial and non-financial measures, and on the  2  BIS central bankers’ speeches  other hand, less discretion to reduce or suspend them. Such a strengthening would improve effectiveness and set the right incentives. At the same time, more ambitious policy requirements would better match the current reality of the euro area.