Overall, however, the economy is likely to remain stagnant for a while, due to the intensifying pressures of inventory adjustment, the continued decline in public-sector investment, and the anticipated deceleration in business fixed investment. Given the slowdown in the pace of growth, the economy is considered to be vulnerable to further negative impacts.
The Stability and Growth Pact obliges participating EU Member States to achieve budgetary positions close to balance or in surplus in a sustainable manner, in order to minimize the risk of breaching the budget deficit criterion of 3 % of GDP, according to the Treaty of Maastricht, in the course of a business cycle.