It was only last week when Mario Draghi warned: “To unwind the consolidation that has been achieved, and in doing so to divest the rules of credibility, would be self-defeating for all countries.” And let us not forget: in the medium term, the Pact stipulates balanced or close to balance budgets.
The 3 % mark that is frequently used as a yardstick is therefore a ceiling and not intended to be a regular TARGET. This is, incidentally, also true of the 60 % debt ratio that almost all euro countries breach. A look in the rear-view mirror shows how poorly the fiscal rules have worked as a speed limit.