The European Commission will receive new vetting powers that will allow them to review draft budgets of Eurozone countries, under a new agreement reached Wednesday.

Lawmakers backed the move which will ensure the 17-nation bloc is making financial decisions in line with European Union (EU) rules to prevent another debt crisis, according to Reuters.

Under the new so-called "two-pack" law, the Commission will be able to ask European countries to change their budgets if they are not up to scratch.

The law complements the existing budget rules, tightened at the end of 2011 through the introduction of hastier financial sanctions for those breaking deficit limits.

The Commission, otherwise known as the EU executive, will have an extra level of oversight of budgets and will be able to put a country facing financial struggle under strict surveillance.

Governments that choose to ignore the Commission's recommendations risk legal action.

The new deal is expected to become law in March. It will mean governments will have to send draft budgets for the following year, based on independent economic forecasts, to the Commission before October 15th for verification.

"This will mean that the Euro area can benefit from a more integrated and effective policy-setting framework already for the 2014 budgetary cycle," the EU Economic and Monetary Affairs Commissioner Olli Rehn said after the deal was reached.

RD

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