Therefore, the markets did not properly perform their expected policing function. Furthermore, the SGP rules were not taken seriously enough. Even Germany ran up excessive deficits for a few years and, even worse, championed a reform of the SGP which ultimately further weakened the application of the fiscal rules.
However, the EMU framework not only failed to avoid excessive deficits, it was also unable to prevent the build-up of macroeconomic imbalances within the euro area.