European standard of fault and Excessive Deficit Procedure

According to the Growth and Stability Pact, the public deficit in countries which have adopted the euro as their currency may not exceed 3 percent and public debt may not exceed 60 percent of GDP. Non-compliance leads to enforcement of national efforts to reduce the deficit and/or debt. Euro countries with a debt exceeding 60 percent of GDP must recover on average one-twentieth of the amount exceeding the limit on an annual basis.
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