mr president the thirty june communication on enhancing economic policy coordination for stability growth and jobs is a follow-up to the communication we released on twelve may and presents concrete tools for enhanced economic policy coordination
we propose a more effective surveillance framework with improved fiscal surveillance stronger surveillance of macro-economic imbalances and a more rigorous ex-ante coordination of economic policies under the european semester
our proposals have been well received in the council by the herman van rompuy taskforce and by parliament as well as in the media
the conclusions of the european council of seventeen june gave a clear endorsement to our suggestions and encouraged us to go ahead with making better economic governance in europe a reality as soon as possible
the commission will adopt the necessary formal legal proposals in the course of this month
it will count on the council's and the european parliament's support to adopt the necessary legislation and make these proposals operational as soon as possible
as part of the legislative package we will propose a new toolbox of sanctions and incentives for compliance with the stability and growth pact
strengthened enforcement mechanisms for fiscal rules are a central element of our proposals key to the credibility of our fiscal framework and an important topic under discussion in the taskforce
as outlined in the thirty june communication we will propose in the first stage a new system of sanctions for the sixteen euro area member states on the basis of article one hundred and thirty-six tfeu and for firstly the preventive and corrective arms of the stability and growth pact and secondly the corrective arm of the surveillance of harmful macro-economic imbalances
this reflects the greater interdependence and stronger constraints in the monetary union
the sanctions will be complementary to those already foreseen by the stability and growth pact but intervene at an earlier stage of the excessive deficit procedure and more automatically
to improve compliance in all twenty-seven member states we plan in the second stage to introduce the possibility of suspension and cancellation of current and future financial appropriations from the eu budget
this would concern expenditure related to cohesion policy the common agricultural policy and the fisheries fund
hence the objective will be to use the eu budget as complementary leverage to strengthen incentives for compliance with the stability and growth pact requirements
