Eurozone Expected to Penalize Members Exceeding Budget Targets

As Eurozone leaders prepare to meet later this week it is expected they will be discussing mandatory penalties for countries failing to meet budget and debt targets. While these targets have always been a condition of membership in the Eurozone, several countries – most notably, Greece – have failed to maintain their compliance.

There will also be considerable discussion on how to boost the euro zone’s crisis capabilities. EU officials said leaders may decide to raise the combined lending limit of the temporary EFSF and its successor, the permanent European Stability Mechanism, which France and Germany want introduced a year early, in 2012.

Source: Reuters

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