The President of the European Commission has warned that the future of the euro and to some extent the European project, depends on the EU's implementation of stronger, stricter and broader governance of the financial markets as well as tougher sanctions for countries that break budgetary rules.
Speaking in Strasbourg this afternoon, Jose Manuel Barroso told MEPs that economic and monetary union needed the tools to allow it to fully function and to ensure its credibility.
He called for greater co-ordination of European member state budgets, as well as stronger sanctions for countries that break EU rules on government spending and debt.
Mr Barroso said that in the future, all EU states should face the risk of losing money from the EU budget if they persisted in breaking the rules.
He was speaking during a debate in the European Parliament on proposals on the governance of the financial markets and on the regulation of bonuses in banking.
Jose Manuel Barroso also told MEPs there would be changes in the way European economies are supervised, adding that it was unacceptable that the behaviour of some economies could put others at risk.
