Reform allows budget deficits to rise

Recession-hit eurozone governments are reaping the benefits of a 2005 reform to their fiscal rules that gives them extra flexibility to cope with the present severe downturn, European Union policymakers and economists reported in November 2008.

European Commission: DG Economic and Financial Affairs: EU Economic Governance: Stability and Growth Pact https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/eu-economic-governance-monitoring-prevention-correction/stability-and-growth-pact_en

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