VIENNA: European Union members will keep control over their budgets but may face penalties for lax discipline under plans EU leaders will discuss next week to address the euro zone debt crisis, Austrian Chancellor Werner Faymann told a newspaper.
"We need a debt brake as we are adopting in Austria in all the countries of Europe. There are also considerations to change the EU treaty," he told Oesterreich in an interview printed on Saturday when asked what the EU summit would decide.
"In any event budget sovereignty will stay with the countries, so that in this case no referendum is necessary. Discussion of whether member states give up their budget sovereignty thus creating a United States of Europe is a long-term one and won't be a topic at this EU summit."
Faymann has made clear that any EU treaty changes creating a fiscal union among members would spark a referendum in Austria.
Friday's EU summit is seen by some as make-or-break for the euro zone after a string of half-measures agreed too late by European leaders over nearly two years failed to stop bond market contagion spreading. Faymann has said there is a "very real danger" the euro zone could break up unless the bloc adopts new rules and sticks to them.
Faymann, who met German Chancellor Angela Merkel on Friday, echoed Merkel's line that the European Court of Justice could get a stronger role in monitoring countries' fiscal rectitude and pointing out violations of EU criteria.
"But at first it is the responsibility of the country to improve the shortcoming. There is also a debate about the possibility of imposing penalties on debt sinners," he said without elaborating.
He reiterated Austria's stance that joint euro bond issues could only be considered at the end of a process of economic integration that established a common policy foundation.
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