ECB’s Orphanides: EU-wide fiscal agency could scrutinse fiscal projections, conduct investigations, if has deficit concerns
- Could envisage greater fiscal policy coordination among euro zone member states, including stronger fiscal rules
- Need credible enforcement for rule breakers, could have quasi-automatic sanctions applied early
- Sanctions could include reduced access to EU funds and limitation or suspension of voting rights
- Mutual support during crisis based on previously agreed rules would lift confidence
- Confident Greek reforms will revitalise economy, raise potential growth
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