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Maastricht Criteria and Public Debt

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  • Vintu, Denis

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.

Suggested Citation

  • Vintu, Denis, 2025. "Maastricht Criteria and Public Debt," MPRA Paper 125712, University Library of Munich, Germany, revised Aug 2025.
    • Handle: RePEc:pra:mprapa:125712
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    File URL: https://mpra.ub.uni-muenchen.de/125712/1/MPRA_paper_125712.pdf
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    References listed on IDEAS

    as
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    6. Baum, Anja & Checherita-Westphal, Cristina & Rother, Philipp, 2013. "Debt and growth: New evidence for the euro area," Journal of International Money and Finance, Elsevier, vol. 32(C), pages 809-821.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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