How and why the stability and growth pact is applied.
The corrective arm of the Stability and Growth Pact ensures that Member States adopt appropriate policy responses to correct excessive deficits (and/or debts) by implementing the Excessive Deficit Procedure (EDP).
Every April, EU Member States are required to lay out their fiscal plans for the next three years.
To ensure the coordination of fiscal policies among Member States sharing the euro as their currency and because economic policy is recognised by the EU Treaty as 'a matter of common concern', governments are required by European economic governance.
Find legislation relating to the EU's Stability and Growth Pact
Fiscal policy guidance for 2023
The Stability and Growth Pact has evolved significantly along with the EU’s economic governance rules.