“EU plan to rewrite budgets,” headlines the Financial Times, revealing details of a plan to give the union “far-reaching powers to rewrite national budgets of eurozone countries that breach debt and deficit rules”.

According to the London financial daily, the proposals, to be tabled at the June 28-29 European Council —

... are part of an ambitious plan to turn the eurozone into a closer fiscal union, giving Brussels more powers to serve like a finance ministry for all 17 members of the currency union. They are contained in a report to be presented at the summit, which will also outline plans for a banking union and political union.

[...] the European Commission would present detailed adjustments for a country in breach of its commitments. The changes would be put to a vote of all other EU countries.

Drafted by European Council president Herman Van Rompuy; European Commission president José Manuel Barroso, along with ECB head Mario Draghi and Eurogroup chairman Jean-Claude Juncker and forwarded to European capitals on Monday night, the document

… includes a proposal requiring eurozone governments to collectively agree their debt levels and the “upper limits” of their national budgets annually. If a country needs to increase its borrowing, it would be forced to go to other eurozone governments to get prior approval.