Eagle-eyed, Cormac Lucey:
Article 4 states that countries with government debt levels above 60% of GDP must reduce that “at an average rate of one twentieth per year”. But those who signed the Treaty appear to have intended that countries with government debt levels above 60% of GDP must reduce that at an average rate of one twentieth per year of the excess over 60% of GDP as Council Regulation (EU) No. 1177/2011 makes clear.
The implications of this difference could be quite significant. If a country’s debt was 80% of GDP the Treaty, as currently drafted, would require it to reduce its debt by 4% (80%/20) of GDP each year when it is generally believed – apparently by the Referendum Commission too – that the Treaty intended that the country should reduce its debt by 1% ({80%-60%}/20)of GDP each year.
Mick is founding editor of Slugger. He has written papers on the impacts of the Internet on politics and the wider media and is a regular guest and speaking events across Ireland, the UK and Europe. Twitter: @MickFealty
Discover more from Slugger O'Toole
Subscribe to get the latest posts sent to your email.
