Stability and Growth Pact (SGP)

key terms

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deficit bias

moral hazard

The following chart illustrates compliance to the deficit rules under the Maastricht treaty (1991-1999), the SGP (1999-2003), and the revised SGP (2005-present).

Net lending to GDB ratio during Maastricht and SGP

Note: A negative net lending position means the government is running a budget deficit, while a positive net lending position means the government is running a budget surplus.

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