EuroparlTV goes to the Belgian Royal Mint to explain exactly how the agreement designed to limit budget deficits in the members of the eurozone works.

How it works: The Stability and Growth Pact

after being ordered by Europe to respect  the Stability and Growth Pact.

Belgium will have to make savings  of several hundred million euros.

Yes, we often forget it,  but euros aren't just coins

that are struck here  at the Royal Mint of Belgium.

The euro has a price and the rules are  fixed in the Stability and Growth Pact

The euro is a bit like  the rules of co-ownership.

Everyone can benefit  from the common areas

whilst respecting the peace  of their neighbours.

But the euro house hasn't  always been well managed.

In 1997 the Stability and Growth Pact  was thought up

to avoid economic sliding  on the part of countries.

Yes, everyone has heard of  the famous Maastricht criteria.

The maximum budget deficit of 3%  of GDP that countries must not exceed.

The aim was to ensure a level of  economic convergence in the eurozone.

Even before the crisis, sanctions for  non-respect of the rules were anticipated

The Greek crisis and its contagion forced  the eurozone to tighten the screws.

It was either that  or the end of the euro, experts now say.

To avoid the worst, a raft of measures  were negotiated and finally adopted

The aim was to consolidate the eurozone.

The idea is to strengthen surveillance  of countries' budgets

before they're adopted  and even afterwards.

To achieve it, the Union included  in the Stability Pact

what is known as  the European semester.

Surveillance no longer concerns  only the deficit or debt of a country.

Now the European Commission will also  look at other macro-economic indicators,

like public and private indebtedness  or trends in unemployment.

Yes, Julie, but to strengthen  the common house more

the states finally agreed to strengthen  sanctions against countries in deficit.

So from now on, fines can be applied  almost automatically

against countries  that don't respect the new Stability Pact.

0.5% of GDP if a country cheats  with its public accounts.

Of course, there may be exceptions.  In exceptional circumstances,

the Union can allow more time  to countries in major difficulties.

There's also talk of creating a real  economic government of the eurozone

with a eurozone minister,  but that's another story.