New EU Rules Target Countries with Export Surpluses

European Commissioner for Economic and Monetary Affairs Olli Rehn has announced a proposal to monitor finances of member nations, particularly any trade imbalances, issue warnings and eventually impose fines on those with “chronic” export or import surpluses. The reason behind the strict reviews, notes journalist Christian Reiermann, is that trade imbalances threaten stability of the euro. “If their accounts remain out of balance, the European Commission will make political recommendations for their financial and economic policies, as well as for wage increases and structural reforms,” he reports. The commission will impose fines on excessive public debt and prohibit individual member nations from allowing budget growth to exceed the rate of economic growth. The new rules on fiscal responsibility would jolt euro nations into living within their means. – YaleGlobal