The current economic situation in the EU sets a new system of rules. In compliance with the latest requirements, the eurozone members must coordinate their budget projects. This control measure is another attempt of the European Commission to resolve the economic problems of the EU. The European Commission experts will estimate budgets, give their comments and recommendations about each budget plan. Only after that procedure these financial documents will be sent to the national governments for approval and adoption. If the inspection reveals some violations of the Stability and Growth Pact or other defects that can slow the economic development, the EC may decide to revamp the budget. This law restricts the coordination terms: medium-term financial plans must be adopted by the end of April, the budget projects are announced by October 15, and by December 31 the documents are approved.
Director of Research Department of the Moscow Stock Center Elena Chernoletskaya thinks that this decision may put the eurozone budget in order. “The financial documents will be subject to additional verification. Previously, some countries adopted rather risky budgets,” said Chernoletskaya.
Although the new bill does not allow the EU nations to change the project unilaterally, and the experts’ remarks are just suggestions, the European Commission has enough authority to make the governments take it seriously. The legislation entered into force on May 30.