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Plan would give EU national budget powers: report

FRANKFURT (MarketWatch) -- European leaders meeting later this week will consider a plan that would allow the European Union to rewrite national budgets for euro-zone countries that fail to meet debt and deficit rules, the Financial Times reported Tuesday, citing a draft report. The plans call for the European Commission, the EU's executive arm, to present detailed budget adjustments for countries in violation of the fiscal rules, the report said. The proposals would then be voted on by all other EU countries. Germany has insisted that tighter fiscal union be a prerequisite for any move toward joint issuance of euro-zone debt, or eurobonds.