The Dutch government has proposed that highly indebted states be put into “guardianship”, with spending decisions seized from the elected government and placed under the direct control of a European commissioner.
If a state is unwilling to surrender its sovereignty in this way, then it would be forced to exit the euro.
“”Member states not willing to make themselves a ward, may choose to make use of the option to leave the eurozone,” Dutch Prime Minister Mark Rutte said in a letter to the national parliament co-signed by the finance, economy and foreign ministers.
“To continue to be part of the monetary union, states should fully respect agreements.”
Under the proposals, seen by EUobserver, a special European commissioner would be appointed to oversee the budgets of euro-area countries.
If a country repeatedly overspends in breach of EU stability pact rules, this commission overseer would be able to intervene directly in the running of the country, in a similar way to how a court intervenes in the running of a bankrupt firm put into receivership, according to officials familiar with the intention of the Dutch government.
“We propose to take a great new step forward by forging effective rules to be strictly enforced by an especially appointed commissioner. This is how we must safeguard the heath and viability of the eurozone and all its members for now and in the future,” Rutte later said of the proposals.
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