EC may request changes in budget supervision

The Ecofin recently accepted a verdict, granting new powers to the European Commission to monitor the national budgets of euro zone countries in an ever-growing battle of mounting debt on the continent. As such, these countries were obliged to send their draft budgets for the following year to Brussels by October 15 last year, prior to parliamentary approval.

At that time, the Board provided feedback and requested changes, whilst it considered whether there was a deviation from the objectives of consolidation on a country-to-country basis. Still, it is worth noting that their demands are not binding. The new changes could allow Brussels to step up supervision for countries threatening the stability of the Eurozone, in hopes of preventing a lingering situation from occurring before it ever starts.

Ahead today, the Eurogroup will contemplate setting a cap on bonuses of managers, a move that would isolate the UK. Although London shows reservations to this action and has no veto power, the other countries can tolerate a minority. This possibly new agreement - which would take effect in 2014 - would cap the bankers' bonuses, such that it could not exceed the amount of the annual fixed remuneration.