European Union Law
Economic and monetary union
(TSCG) of 2 March 2012, also referred to as the “Fiscal Compact”. The sanctions for member states who do not comply with the criteria are more stringent, as not only do they provide for the same measures of moral suasion as Article 121, but they may also include the invitation to the EIB to reconsider its lending policy, requiring the member state to make a non-interest-bearing until the excessive deficit has been corrected, or be imposed with fines. Strikingly, Article 126(10) excludes however the application of the usual infringement procedure of Articles 258–9 TFEU which might result in a referral to the CJEU. Those sanctions only apply to the members of the Eurozone.
As far as the euro area is concerned, a number of recommendations and binding measures of secondary law known as the Stability and Growth Pact have been adopted, which specify in far more detail how compliance with the guidelines for economic policy and the criteria on deficit and debt have to be calculated. The whole apparatus of relevant secondary legislation and soft law was considerably strengthened in 2011–12 in the framework of the financial and sovereign debt crisis, in order to try to establish confidence of the financial market as to the sustainability of fiscal policies in the euro area. One of the outstanding provisions of the relevant secondary law is the reversal of qualified majority voting. According to the treaties, a blocking minority in the Council impedes the adoption of a...
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