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Maastricht menopause

How proud was in Europe that the euro so strict stability criteria, the so-called Maastricht criteria have been introduced. Woe, woe, when a country does not turn held. Then, yes then, calls the EU Commission's excessive deficit procedure " and then the EU red tape fall out the front and back blue letters. The EU Regulation No 1056/2005 stipulates that

between the reporting of financial data proving the existence of an excessive deficit, and the decision to impose sanctions may be generally not more than 16 months .

If the Member State but is acting in accordance with the recommendations of the Council, suspended the excessive deficit procedure and it has more than 16 months, threatening to a penalty. It never came to impose a penalty for an excessive deficit procedure. This means that the system works absolutely fantastic, either, or Not at all. Let's see the figures of the last five years for the two long-term stability criteria. These specify that

1 should) be the public deficit not exceeding 3% of gross domestic product (GDP) and



2) the debt is no more than 60% of GDP

. The following two tables show the location of the last five years (source: Eurostat), the yellow shaded areas in violation of the relevant Maastricht criterion indicates. First

devote ourselves to the deficit criterion:



Only five countries have managed in the last five years, never to produce more than 3% deficit (Denmark, Sweden, Finland, Luxembourg and Estonia). Only these countries have fairly balanced budgets brought to ways in which the expenditures exceed revenues by 3% of GDP exceeded. Greece and Hungary have met in the last five years the deficit criterion never Poland has in four of the last five years are not adhered to and the United Kingdom, Portugal and Italy have broken the mark in three of five years.

Now we come to the debt criterion:




Eight countries had in each of the last five years, debts that were higher than 60% their GDP (Belgium, Germany, France, Greece, Italy, Malta, Portugal, Hungary). But 13 countries still had less debt, including (perhaps surprisingly?) Countries such as Bulgaria, Poland, Romania, and Spain.

If you take a look at so one wonders whether the Maastricht criteria can ever be taken seriously? Perhaps we should, but few make it. In 2009, almost all EU countries tear deficit criterion, but five. Now you could say it was in difficult economic times, how it is. But if you look at what the five countries, the self-produced in the crisis year 2009 less than 3% deficit meet in Denmark, Sweden, Finland, Luxembourg and Estonia. Wait, that are the same countries throughout the past five years, fewer than 3% deficit. These five had never more than 60% debt.
seems to me, that while it is normal, in economic crises have a larger deficit, but these deficits are, the higher, the worse the financial policies of the previous years was. Yes, it actually seems to have been so that a large part of Europe has lived beyond its means and the Maastricht criteria were able to prevent as little as a sieve can hold water. Currently it is again in fashion, a to discuss the change from feisty to a lax observance of the criteria. It is hoped that after menopause the Maastricht criteria to stop the budgetary policy of the EU countries to continue to look so old.