"We want to move towards more tailored requirements based on debt stainability," an EU official who is working on preparations for the proposals, told CNBC.
However, the question that some capitals will have over the new plan is how the European Commission will enforce it. The message follows previous comments made by the German Finance Minister Christian Lindner who also wants the upcoming changes to boost enforcement of the rules.Market players will be watching out for the details and how the discussions will evolve in the coming months.
Henry Cook, economist at MUFG bank, said that "ideally, any update to the fiscal rules would allow a greater degree of flexibility related to each member state's individual circumstances while also having credible sanctions for flagrant breaches."