It is claimed, for example, that these rules force budgetary policy to act in a procyclical manner counter to the requirements of stabilising the economy. Such criticism does not, however, take due account of the rules of the European Stability and Growth Pact.
It is, in fact, precisely the task of this pact to ensure that government budgets can “breath” during the business cycle without breaching the deficit limit of the Maastricht Treaty. Such flexibility is to be achieved through a budgetary position which is at least close to balance over the medium term - in other words, when seen over the cycle as a whole.