Beyond the realm of financial markets, a functioning Economic and Monetary Union will require an increased awareness on the part of all Member States of the spillover effect of their national policies, especially their budgetary policies. Without this, the Eurosystem’s single monetary policy would face severe pressures.
In order to anchor responsible fiscal policies in the EMU rule book, the Treaty itself contains stipulations which oblige Member States to treat national economic policies “as a matter of common concern” and subject them to a multilateral surveillance procedure. These rules derive additional force from the existence of sanctions in the event of persistent excessive deficits.