The needed framework is not aimed at increasing the power of the Commission in macroeconomic surveillance in the EU but at highlighting the Euro area dimensions of surveillance and policy adjustments. This dimension requires more automaticity with a focus on countries with vulnerabilities, competitiveness deterioration and high debt levels. It should foresee graduated sanctions at a sufficiently early stage to reinforce compliance.
It should take aim at national rigidities that are incompatible with a currency union, like automatic indexation mechanisms of wages and pensions. On the fiscal side, it is also worth remembering the emphasis that the Werner report put on an independent fiscal authority. The quality and independence of economic analysis is crucial.