NEWS + ANALYSIS
DANIEL HINŠT

NEWS + ANALYSIS

THE “3-60” RULE IS NOT ENOUGH TO RESTORE EU FISCAL STABILITY

June 3, 2014 | by Daniel Hinšt

The European Union has a rule to prevent member states from running up excessive budget deficits and debt. How’s it working? Before answering that question, let’s look at the rule, which is also a criterion for gaining admittance to the eurozone. The rule mandates that the annual government deficit may not exceed 3 percent of GDP and that public debt may not exceed 60 percent of GDP. Hence, the 3-60 rule.

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