BRUSSELS (Dow Jones)--Euro-zone countries must reduce their debt levels and the European Union must levy harsher sanctions on those who fail to follow advice on doing so, German Finance Minister Wolfgang Schaeuble wrote in an opinion column for Belgian newspaper L'Echo.
"The European Monetary Union will not function if certain countries keep running budget deficits and weakening their competitiveness at the expense of the euro's stability," he wrote in an article published Tuesday.
Schaeuble said the European Financial Stability Mechanism is a temporary measure while the euro zone fixes the "fundamental faults" in the stability and growth pact, the fiscal rules to which countries in the currency bloc must adhere.
"Countries who repeatedly ignore recommendations designed to reduce their excessive deficits, or who manipulate official statistics, would see their EU subsidies frozen and voting rights suspended," he wrote.
Source: http://online.wsj.com
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