Ten facts about the Excessive Deficit Procedure

Abstract

The Stability and Growth Pact (SGP) and the Maastricht criteria lay down the limits on the growth of public debt and budget deficit, as well as the excessive deficit procedure (EDP) for countries which do not comply with the Maastricht's fiscal rules . The European Commission will probably launch an EDP against Croatia as well, given that its budget deficit exceeds the reference value and that its public debt is growing. In such cases the European Commission does not assume control over a Member State's budget execution in the way that it directly proposes measures on either the revenue or expenditure side of the budget. It rather monitors the realisation of the goals set in the Recommendation, with a view to bringing the situation of an excessive government deficit to an end, while the Member State concerned decides on the set of measures to achieve the goals defined in the Recommendation.