EU countries have agreed that they should limit the amount governments can borrow each year to 3% of GDP and their total degree of indebtedness to 60%. To know more, see the EU's Stability and growth pact legislation.
The Excessive Deficit Procedure (EDP) is the EU's step by step procedure for correcting excessive deficit or debt levels.
Sound public finances encourage growth because borrowing costs money. By avoiding excessive deficits and excessive debts, governments can spend more on useful things like education, or infrastructure, and less on interest charges to banks.
The infographic below illustrates the EDP process and the actors involved.
Currently, 11 out of the 28 EU Member States are subject to an EDP. To find out more:
To learn more about how the debt and deficit criteria is measured and comparability between Member States ensured: