Development Perspectives of Eurozone

The Commission also raised concerns as to whether the plan would be subject to existing EU treaty rules. The implementation of the Pact is foreseen for next year followed by a number of measures to strengthen fiscal positions and growth prospects through fiscal, financial and structural reforms.
Regarding its financing capacity the European Stability Mechanism (ESM) will have an overall effective lending capacity of 500 billion euro, while 440 billion euro of the European Financial Stability Facility (EFSF) will be made fully effective during the transitional period and until the entry into force of the ESM. Among the concrete policy commitments encountered in the Pact, the new Pact commits Euro area Member States to translate EU fiscal rules as set out in the Stability and Growth Pact into national legislation. The choice of the specific national legal vehicle to be used will be left to the Member States, but it has to make sure that it has a sufficiently binding and durable nature. Special attention will be paid to tax policy coordination. Certainly, direct taxation remains a national competence. However, the Pact commits Member States to engage in structured discussions on tax policy issues, notably on exchange of best practices, avoidance of harmful practices and proposals to fight against fraud and tax evasion.
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