The cep traces the development of the principle of subsidiarity and demonstrates that to date – five years after entry into force of the Lisbon Treaty – the principle of subsidiarity has failed to limit the exercise of power. It then offers five suggestions on how to strengthen the principle of subsidiarity in the EU.

The four Presidents of the European Council, the Commission, the Eurogroup and the European Central Bank (ECB) have proposed measures to improve the stability of the Euro Zone.

The Commission wishes to combat offences that have a detrimental effect on the EU budget by harmonising provisions on penalties. To this end, it proposes a harmonisation of the relevant offences and prescription periods for prosecutions as well as minimum sanctions depending on the severity of the offence.

The Fiscal Compact of 2 March 2012 obliges the Contracting Parties to introduce a debt brake into national law. Amongst other things, it provides for a correction mechanism obliging the Contracting Parties directly in case of default. Thus the budgetary discipline of Contracting Parties is to be strengthened. The Commission proposes seven principles which the Contracting Parties should take into in shaping national laws.

The EU Heads of State and Government (apart from Great Britain and the Czech Republic) entered into an agreement to improve the budgetary discipline of the Contracting Parties. The Contracting Parties undertake to transpose a debt brake into their national legal systems and to facilitate the imposition of sanctions in the deficit procedure.