National budgets to face scrutiny as finance ministers agree EU proposals

EUROZONE finance ministers have agreed to the EU tightening its grip on member states’ annual budgets, checking that the spending and deficit targets are in line with its rules.

To avoid housing and other bubbles such as the one that hit the Irish economy, they will also keep a close eye on not just public but private debt, watching for danger signs that economies are overheating.

The measures are part of a panoply of indicators that the European Commission and EU member states will monitor in an effort to prevent future economic crisis.