To recall, last September, the European Commission presented, the expected, legislative proposals, on the so-called Economic Governance in the EU and EMU. The Commission proposed broader and enhanced surveillance of fiscal policies as well as macroeconomic policies and structural reforms. Member States will be monitored not just for excessive deficits and debts, but also for imbalances and falling competitiveness. Although the UK would not be subject to sanctions, some of the Commission proposals on economic coordination and surveillance would also apply to the UK, which is unacceptable.

The Daily Telegraph, today, reports: “ The EU is seeking new "budgetary surveillance" powers to vet the British budget before it is presented to parliament, according to government officials.” It particularly refers to an “EU directive setting out a "European fiscal framework" and the rules for EU "budgetary surveillance"”

Moreover, it points out that Bill cash “warn that the directive threatened both the government and parliament's sovereignty.”

Bill Cash, was quoted saying "The direction in which our increased fiscal obligations to the EU are heading gives cause for great concern because they affect our own budgetary arrangements,"

"We must, emphatically, fight budget arrangements which come with tax and spending implications,"

"We talk tough but don't do anything tough. It's no good saying we oppose it. We have to put our foot down and say No."