The deficit reference value of 3% of GDP, which is laid down in the Maastricht Treaty itself, is the nominal anchor for the rules and procedures governing fiscal policies in the EU. This anchor must not be placed in doubt. Fully abiding by the rules and implementing them in every respect has very solid economic justifications, and is not a mere procedural matter.
Upholding trust in the soundness of public finances enhances confidence of all economic agents and thereby contributes to sustainable growth in consumption and investment. Stability and growth are thus not conflicting objectives, but rather reinforce each other - a fact which is very well captured in the title of the fiscal framework called the “Stability and Growth Pact”.