Economic sanctions can be decided under the Economic and Monetary Union when member states have a deficit in their publiv finances above 3% of their GNP. Many countries are far above under the financial crises from 2008 without having had to pay fines. See the rules in the Lisbon Treaty Art. 126.9-11 TFEU.
Economic sanctions and boycot can be imposed on third countries by qualified majority according to Art. 215 TFEU (previously 301 TEC) with Court control in Art 275 TFEU.
Political sanctions: Member states can lose their voting rights if the other EU countries find that they have breached Human rights.
Under the Treaty of Nice a so-called lex Austria article has been introduced. It is repeated in the Lisbon Treaty as Art. 7 TEU.
The implementation with more detailed voting rules and sanctions can be found in Art. 354 TFEU.
Four-fifths of the member states, with the support of an absolute majority of members in the European Parliament, can warn a counry against its possible breach of common principles.
Voting rights may then be suspended by superqualified majority in the Council and two-thirds majority in the European Parliament, also representing an absolute majority of members.
The Lisbon Treaty include the lex Austria in Art. 7 TEU and Art. 354 TFEU.
See also Austria.