12/1/17: Breaking EU Rules? Often and Freely

EU's Fiscal Discipline in one table: here is a summary of the EU member states' performance when it comes to 3% deficit ceiling set out as a core fiscal criteria:

Yes, even after a large scale fiscal 'retrenching' of 2016, on average, EU member states have been outside satisfying fiscal deficit ceiling criteria 41 percent of the time, with EA12 average being worse - at 43 percent.

Six EU states are more than just serial violators of the rule, with their respective frequencies of falling outside the rule constraints being in excess of 2/3rds. It is worth noting that in this group, all states are violating rules predominantly during the years of economic expansion.

Another 11 states are frequent violators, breaking the rule more than 1/3rd of the time but less than 2/3rds. Here too, with exception of Cyprus and Slovenia, more violations took place during the times of expanding economies than during the periods of recessions. All in, 17 states of the EU are breaking the EU fiscal rule on deficit ceilings more than 1/3rd of the time. Only 7 states break the rule less than 25 percent of the time and only 5 break the rule less than 10 percent of the time.

Surely, nothing to worry about.

23/5/16: Government Deficits and European 'Rules'

Germany's Ifo Institute prepared a handy table of historical records for EU member states with respect to satisfying the deficit 'break' rule of 3% of GDP (note, I added some side calculations to the original table for averages and for % of years in violation, based on each country accession year):

Enjoy the fact that with exception of Luxembourg, Estonia and Sweden, and adjusting for recession-related causes also Denmark, no country in the EU has managed to fully satisfy the Maastricht criteria.