28 SEP 2010
European Union officials are launching an effort to impose sanctions on member states whose budget deficits are out of control, and Germany is one of the strongest - and harshest - supporters.
The European Union needs to penalize members who break the bloc's rules on borrowing and spending, according to statements made by top EU officials on Monday.
Speaking to the European Parliament's economic affairs committee, European Central Bank President Jean-Claude Trichet warned that current oversight on EU states' budgets is too lax, and called for a board of "wise men and women" to watch over budget discipline.
"What has been lacking is some kind of incentive to manage finances responsibly," Trichet said. "Indeed, a core, absolutely indispensable, element of an effective surveillance mechanism is a functioning mechanism of incentives and sanctions - both financial and non-financial."
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