Excessive public deficits procedure
Excessive public deficits procedure
Participants in the Economic and Monetary Union must, according to the Stability and Growth Pact, only have a deficit of the general government budget not exceeding 3% of gross domestic product (GDP).
The Commission launches "The procedure for excessive deficits" when there is a danger that a country exceeds the 3% limit.
The three-percent ceiling is now supplemented with a ceiling of 0.5% of the so-called structural deficit, where they have disregarded the business cycle.
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See also the Convergence criteria and the Economic and Monetary Union.
