The European procedure in the event of an excessive Deficit
According to the Treaty establishing the European Community, the member states of the EU are obliged to avoid excessive government deficits (Article 104). That obligation was confirmed by the European Stability and Growth Pact when the EURO was introduced as a common currency in the participating member states. If certain reference values are exceeded in a member state, the excessive deficit procedure, as it is called, is triggered, at the end of which fines amounting to billions may have to be paid.
