EU finance ministers decided to introduce tough sanctions on highly indebted countries that will violate rules in order to cut the huge deficit spreading in the region. The decision came after introducing nearly $1 trillion to bailout highly indebted countries. EU President Herman Van Rompuy said We will provide new sanctions, more than is now provided. Countries exceeding the EU's 3% ceiling by 0.5% will be subject to a penalty. Also, EU countries ensured that there will be more coordination between them, especially during each country's annual budget-writing process.
France agreed with Germany to impose automatic fines, while the German finance minister outlined nine-point plan which calls for balanced-budget adjustment.
It is worth mentioning; last week Germany approved its part of the 750 billion euros bailout which amounted 148 billion euros, while Spain undertook its first wage reduction since 1978.