BRUSSELS—The European Commission proposed Wednesday significantly tighter controls over euro-zone members’ budgets, alongside options for a common euro-zone bond market.
….The commission said the deteriorating economic climate requires greater reform efforts from member states.
If a government doesn’t comply with the EU’s demands, they could be locked out of European Union budget funding, which can amount to billions of euros a year.
….The proposals are designed to strengthen the way the euro zone is governed and they go as far as the Commission has said it can go without changing the European Union treaty. Closer integration would set the groundwork for issuing joint bonds among the euro currency’s 17 governments.