IMK Study No. 66
Why 60 and 3 percent?
The 3 and 60 percent deficit and debt caps came into the Maastricht Treaty 1992 by coincidence. There is no sound economic reasoning behind them. The Fiscal Compact (2011) has added a questionable rule for structural deficits and a problematic rule for the 7 high debt countries in the Euro area. More infrastructure investments, necessary for a Green New Deal, are restrained by the present fiscal rules.