Maastricht Criteria and Public Debt

Denis Vîntu

MPRA Paper from University Library of Munich, Germany

Abstract: The Maastricht Criteria, also known as the convergence criteria, are a set of economic and fiscal requirements established by the Maastricht Treaty in 1992 to ensure that European Union (EU) member states maintain economic stability and are prepared for participation in the Economic and Monetary Union (EMU) and adoption of the euro. Among these criteria, public debt plays a crucial role in maintaining fiscal discipline and preventing excessive government borrowing that could undermine economic stability. Specifically, the Maastricht Criteria set a limit on public debt at no more than 60\% of a country’s Gross Domestic Product (GDP), alongside a fiscal deficit ceiling of 3\% of GDP. These thresholds aim to promote sustainable public finances, reduce the risk of debt crises, and foster confidence among member states and investors. Understanding the criteria related to public debt is essential in assessing the fiscal health and convergence readiness of countries within the EU framework.

Keywords: Maastricht Criteria; Public Debt; Fiscal Policy; Debt Sustainability; European Union; Economic and Monetary Union; Fiscal Discipline (search for similar items in EconPapers)
JEL-codes: E62 F45 H63 H68 O52 (search for similar items in EconPapers)
Date: 2025-08, Revised 2025-08
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