by Mish Shedlock, Mish Talk:
The EU never enforced its Growth and Stability Pact or Maastricht Treaty rules. The crisis is coming to a head with France and Italy in the spotlight. The first casualty will be Green policy.
Compliance Rules
- Deficit rule: a country is compliant if (i) the budget balance of general government is equal or larger than -3% of GDPÂ or, (ii) in case the -3% of GDP threshold is breached, the deviation remains small (max 0.5% of GDP) and limited to one year.