EU states agree new rules to rein in budget sinners

European Union finance ministers on Tuesday proposed six new laws aimed at tightening budget discipline and punishing governments that overspend to prevent a new debt crisis.

The EU said ministers ended months of sluggish negotiations on new rules covering national budget management, agreeing on the need to introduce financial penalties for states that repeatedly break a beefed-up Stability and Growth Pact -- best-practice targets originally drawn up to ensure currency partners would not have to rescue wayward members of the eurozone.

The new rules, which the European Parliament may seek to toughen further in negotiations on legislative drafts between now and June, represent "a key contribution for the discussions of heads of state or government on Europe's comprehensive response to the economic crisis," said Hungarian economy minister Gyorgy Matolcsy, who chaired the talks.

For more: AFP: EU states agree new rules to rein in budget sinners