Our economic governance framework has not been sufficient to ensure sound policies are conducted in all Member States. The Treaty clearly specifies that Member States have committed to economic policies geared to contributing to the objectives of the Union, one of which is a stable single currency. They have yet to live up to this commitment fully.
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.