The involvement of the EU in developing the ex ante dimension of budgetary and economic surveillance is based on the assumption that prevention can be more effective than correction. Sanctions can play a role in dampening the relative convenience of profligate fiscal policies, but a system of early peer-review of national budgets could detect inconsistencies and emerging imbalances at an early stage.
Given the extensive use of the system, the ECB recently decided to extend the operating hours of the TARGET system by one hour to 7 p.m. for a limited period ending on 31 January 1999. This should alleviate some of the time pressure on commercial banks when familiarising themselves with the TARGET rules.