In response to these deficiencies, a much strengthened SGP, known as the Six Pack, entered into force in November 2011, entailing a stronger preventative arm and with stronger corrective action requirements. The Six Pack ensures stricter application of the fiscal rules by defining quantitatively what constitutes a “significant deviation” from the Medium Term Objective (MTO).
The MTO is the required structural balance which will ensure sustainability of the public finances, set out in the SGP. Furthermore, an Excessive Deficit Procedure can now be launched when a country’s debt is in excess of 60% of GDP, and not only on the basis of a deficit exceeding 3% of GDP, as was previously the case.