The Governing Council of the ECB is concerned that the reforms to economic governance currently under discussion are a step in the right direction but do not go far enough to address the structural weaknesses of fiscal and broader macroeconomic governance in the euro area. At the very least, we require more automaticity in the sanctioning mechanisms.
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.