by countries such as Ireland, which have low corporate tax rates. The opinion of the European Commission is that having a common rules for calculating of the base amount over which the different national tax rates are applied is beneficial for the enterprises since it will reduce the administrative burden and costs of maintaining compliance with 27 different rule sets for corporate bookkeeping. Adopting debt brakes The word "debt brake" comes from the German "Schuldenbremse", an amendment to the constitution legally limiting the size of sovereign debt countries are allowed to run. These have been implemented in Switzerland in 2003 and in Germany in 2010. Debt brakes can vary in strictness and details of the intended implementation are not yet clear, but the motivation for this rule is to create a legally binding policy instead of the current budget guidelines on deficits which have been not been implemented by member countries. Criticism The plan has been criticised for impinging on the sovereignty of countries, due to its authority to set policy in areas that were previously under national sovereignty. The reforms that the pact contain have also been criticised as being too harsh, or conversely called into question for not being strict enough in its requirements to implement reforms. On the other hand, some leaders agree that in order to avoid dangerous nationalisms and have fiscal and economic governance, it is necessary to transfer sovereignty. See also Enhanced co-operation European sovereign debt crisis European Fiscal Union Treaty of Lisbon Sixpack (EU) References Further reading Foremny, D. (2011). Vertical aspects of sub-national deficits: the impact of fiscal rules and tax autonomy in European countries, MPRA Paper 32998, University Library of Munich, Germany. External links Euro Pact Plus official website Competitivness Pact BBC.co.uk Eurozone Policy and political reactions to the Eurozone crisis 2011 in the European Union 2011 in economics Multi-speed Europe