The corrective arm/ Excessive Deficit Procedure
Legal basis of the Stability and Growth Pact
The legal basis of the Stability and Growth Pact (SGP) are Articles 121 and 126 of the Treaty on the Functioning of the European Union (TFEU). Protocol 12 of the Treaty gives further details on the Excessive Deficit Procedure, including the reference values on deficit and debt. Article 136 of the TFEU provides for specific provisions to be adopted for the euro area. It is the basis for a sanctions regulation for euro area Member States (included in the so-called Six Pack) and the so-called Two Pack regulation, which includes enhanced monitoring and surveillance in the euro area.