Most EU nations are breaching the deficit limit of 3 percent of GDP set by EU for all current and potential eurozone members.
While the rule comes from EU’s stability and growth pact it does not seem to trigger much action. In fact, so many are violating it that the rest are probably not motivated to keep the deficits in control either.
Greek Debt: Lehman Brothers Redux? [View article]
While the rule comes from EU’s stability and growth pact it does not seem to trigger much action. In fact, so many are violating it that the rest are probably not motivated to keep the deficits in control either.
Kind of "tragedy of the commons".