European standard of fault and Excessive Deficit Procedure
According to the Growth and Stability Pact which applies to all euro countries, government deficit must remain below the level of 3 percent of GDP. Government debt must nog 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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