Mr. John Palmer:

Under the regulation, none per se, but if it is right and we press ahead, then under the Stability and Growth Pact, if we end up with an observed significant deviation from our MTO or from the adjustment path towards it, the warning from the Commission will kick in, coupled with recommendations to the Council to take actions within six months of the warning. If a member state does not take effective action within the relevant deadline, the Council can make a decision of non-compliance, and that is when the sanctions process kicks in, with an interest-bearing deposit of 0.2% of GDP of the preceding year, which is put in place on the basis of reverse QMV. In other words, a qualified majority vote is needed at Council to overturn the Commission's recommendation. It should be borne in mind that this is subject to exceptional circumstance and all the various other safeguards. That is where it kicks off. If, further down the road, the member state ends up in an excessive deficit, there are non-interest-bearing deposits, and if it continues to fail to take action, there are fines and then possibly annual fines.