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STABILITY AND GROWTH PACT

Statistics Directorate    
Definition:
The Stability and Growth Pact consists of two European Union Council Regulations on the strengthening of the surveillance of budgetary positions and the surveillance and co-ordination of economic policies and on speeding up and clarifying the implementation of the excessive deficit procedure, and of a European Council Resolution on the Stability and Growth Pact adopted at the Amsterdam summit on 17 June 1997.

It is intended to serve as a means of safeguarding sound government finances in Stage Three of Economic and Monetary Union (EMU) in order to strengthen the conditions for price stability and for strong sustainable growth conducive to employment creation.

Context:
More specifically, budgetary positions close to balance or in surplus are required as the medium-term objective for Member States, which would allow them to deal with normal cyclical fluctuations while keeping the government deficit below the reference value of 3% of GDP.

In accordance with the Stability and Growth Pact, countries participating in EMU will report stability programmes, while non-participating countries will continue to provide convergence programmes.

Source Publication:
European Central Bank Annual Report.

Hyperlink:
http://www.ecb.europa.eu/pub/annual/html/index.en.html

Statistical Theme: Financial statistics

Created on Tuesday, November 13, 2001

Last updated on Tuesday, June 11, 2013