In this way deficits can be kept below the 3 per cent maximum set by the Treaty without problems unless the downturn is extraordinary severe. In such cases sanctions will not be used. Denmark is also part of the stability and growth pact.
Its sovereign debt has been significantly reduced, the Greek authorities are intensifying their efforts to implement fiscal and structural reforms, and the European Union and International Monetary Fund have pledged a considerable amount of new funds as part of a second assistance package. The Greek economy remains in a deep recession, however.