Merkel reportedly seeking new treaty to enshrine budget rules

The German Chancellor is said to be seeking agreement amongst EU members on a new treaty which would enshrine budget rules across the continent.

It is understood one of the proposals concerns the role of the European Court of Justice, which "could for example acquire the right to monitor the budgets of member states and punish those that run up a deficit."

The proposals by Angela Merkel are not being being viewed favourably by many of the member states.

It is reported Ireland would not be in favour of the idea – as it would trigger an automatic referendum on approval, while Poland also opposes it, believing no consensus is possible.