European Commission agreed on tougher rules to be placed on 27-nation's excessive borrowing and imbalances in EU economies in order to extinguish the sovereign debt crisis and prevent future ones.

The Council agreed a general approach on a package of measures aimed at strengthening economic governance in the EU - and more specifically in the euro area - as part of the EU's response to the challenges highlighted by recent turmoil on sovereign debt markets, conclusions of the meeting said. In addition, the statement said The Commission's proposal for imposing a deposit or a fine would be considered adopted unless turned down by the Council via qualified majority,

Sanctions will be placed on countries in case of default and breaking the new rules, where first they would be warned by the Commission and if it didn't help, the country would have to make interest-bearing deposit of 0.2% of GDP.