'Europe Must Lay a New Foundation for the Euro'

On Wednesday, the European Commission presented a proposal for tighter rules to keep euro-zone members within strict debt and deficit limits and help prevent another crisis like the one in Greece. The Commission wants euro-zone governments to coordinate their budget policies with other members in advance, to prevent overspending. The proposal, which could mean autonomous nations have less control over their own economies, may see finance ministers discussing budget plans with other EU members before they present them to their own national parliaments.

"Coordination of fiscal policy has to be conducted in advance, in order to ensure that national budgets are consistent with the European dimension, that they don't put at risk the stability of the other member states," European Commissioner for Economic and Monetary Affairs Olli Rehn said in a statement.

The plan also calls for the creation of a permanent mechanism for providing financial assistance to cash-strapped euro-zone members. Such a mechanism could eventually replace the €750 billion package that EU finance ministers agreed on earlier this week, European Commission President Jose Manuel Barroso said.

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