In what would amount to an extraordinary extension of European Union control over a Member State, the new commissioner would have the power to veto budget decisions taken by the Greek government if they were not in line with targets set by international lenders. The new administrator, appointed by other eurozone finance ministers, would take responsibility for overseeing “all major blocks of expenditure” by the Greek government.
“Budget consolidation has to be put under a strict steering and control system”, the proposal reads. “Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time."
The German plan underscores the depths of mistrust between Greece and its European Union lenders. Greek finance minister, Evangelos Venizelos, said that European integration was based on the “institutional parity of Member States” and the “respect of their national identity and dignity”. He said anyone who ignored that “ignores some key historical lessons”.
Under the new German plan, Athens would only be allowed to spend on the normal functioning of its government after servicing its debt. If such a law is adopted, the proposal states, financial markets and other creditors would be reassured that defaults would not occur in the future.
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