Calls for the European Union to be given more sweeping economic powers continue to be voiced, with a European commissioner saying Brussels should have a greater say in national budgets.

As the Greek financial crisis continues to seethe, threatening the euro, the EU is claiming that Brussels needs greater oversight over national economies in order to prevent a repeat in other states. At the monthly meeting of EU finance ministers in Madrid April 16 to 18, European Commissioner for Economic and Financial Affairs Olli Rehn outlined European Commission proposals for greater surveillance of national budgets. Under the plans, to be presented in full on May 12, national budgets of eurozone members would be subject to “systematic and rigorous assessments” by the European Commission and fellow member states before being able to be approved by a nation’s parliament. “Remedial actions” would then be taken if necessary, Rehn explained. Naturally, some European finance ministers are somewhat skeptical of the idea, concerned it could erode parliamentary control over national budgets.

Spiegel Online explained last week, “The euro group of 16 countries that use the common currency would be subject to a body at the European level similar to Germany’s Finance Planning Council, where budget policies are co-determined by the federal government and the states.”

In an interview with the Financial Times Deutschland, Rehn said there will be greater “coordination of the amount and development of all expenditures in the budgets.” He pointed out that the new Lisbon Treaty contains a provision—Article 136—that makes closer economic policy coordination possible. The newspaper said that following the meeting in Madrid over the weekend, the EU commissioner planned to meet in Germany with members of the Bundestag to discuss the issue, before the European Commission puts together its final proposal.

The consultation with Germany is not surprising seeing as the idea of a European economic government originated primarily with Germany and France. Last month, at a meeting of eurozone finance ministers, German Chancellor Angela Merkel pushed a plan put forward by the German and French finance ministers for Brussels to monitor and regulate the taxation and spending policies of eurozone nations. “She wants to introduce financial penalties for states with persistently high budget deficits, giving the EU a high degree of control,” reported the Mail Online. The Mail quoted Tory Member of Parliament Bill Cash as referring to the initiative as “another Franco-German stitch-up” that would lead to unprecedented interference in member states’ economic affairs. “We have to fight this drive for political union, which is what this idea of economic government is all about,” he said.

The Mail Online went on to report:

Mats Persson, of the think tank Open Europe, said the proposals were potentially more significant than the Lisbon Treaty, which was pushed through last year without a referendum in Britain.He added: “Merkel’s vision is quite clear—countries which run persistently high deficits should face heavy sanctions.”These would be imposed by the European Council in a vote in which there would be no veto and the member state concerned would be excluded.”It is a massive step, giving the EU powers over a country’s economy, which has been a no-go zone until now.”It would effectively give the European Council the power to sign off national budgets.”

Even as member states balk at yet another power grab by Brussels as the latest budget proposals are debated, watch for the pace of both economic and political union to quicken, and for the German-controlled EU to gain more and more control over national economies.

For more on Germany’s involvement in the Greece crisis—and how it stands to benefit, read “The Greek Crisis Was Planned!”