France/German call for sanctions on countries that fail to take budget action

Countries that fail to take action on budget deficits for more than 6 months will be sanctioned, France and Germany say, according to a Reuters headline.

The general terms of the sanctions would not require an immediate change to EU Treaties, they say.

UPDATE: Merkel says treaty changes will be necessary once the bailout mechanisms expire after three years. Treaty modification/ratification is never a smooth process in the EU.

In the futures, look for countries to take enough action to avoid sanctions while they play for time…