While we highlighted the dire situation in Greece earlier, the deficit reality across the euro zone is that most states are breaking the region's rules.
Countries are not supposed to run deficits higher than 3 percent of GDP, according to the Maastricht Treaty:
The purpose of the procedure is to ensure that excessive deficits are promptly corrected. In normal circumstances, a general government deficit exceeding the reference value of 3 percent of gross domestic product (GDP) at market prices is considered excessive. This deficit limit is not applicable in a severe recession.
The exclusion may give several of the euro zone's member states a bye, but still doesn't deflect attention from what's a broad disease, rather than a localized problem.
The rule breakers in 2010:
- Ireland: 32.4 percent deficit as a percent of GDP
- Greece: 10.5 percent deficit as percent of GDP
- Spain: 9.2 percent deficit as percent of GDP
- Portugal: 9.1 percent deficit as percent of GDP
- Slovakia: 7.9 percent deficit as percent of GDP
- France: 7.0 percent deficit as percent of GDP
- Slovenia: 5.6 percent deficit as percent of GDP
- Netherlands: 5.4 percent deficit as percent of GDP
- Cyprus: 5.3 percent deficit as percent of GDP
- Austria: 4.6 percent deficit as percent of GDP
- Italy: 4.6 percent deficit as percent of GDP
- Belgium: 4.1 percent deficit as percent of GDP
- Malta: 3.6 percent deficit as percent of GDP
- Germany: 3.3 percent deficit as percent of GDP
That leaves only Luxembourg, Finland, and Estonia within the rules.
Related Links:
The 21 Countries Most Likely to Default (Business Insider)
Angela Merkel Holds the Fate of Europe in Her Hands (Business Insider)
