Dr. Robert Sweeney:

Yes they are. We did not really elaborate on how that 3% rule would be implemented. I completely agree with the Deputy that if there are some exceptional circumstances there should be an escape clause, including for debt servicing to GDP. As I said, we did not elaborate on how one would get to there. I take the Deputy's point that it might well be unfair for member states such as Italy, that have debt to GDP in excess of 3%, if they were suddenly told we are implementing new rules, which are anchoring interest payments to GDP.

In that context, there would be a need for those member states to consolidate. If Italy or any other country was on a path moving towards 3% of GDP, such as through economic growth, for instance, it would not necessarily make sense to tell that country to consolidate. Our main point was that if a country is behind 3% but it starts getting up to 3%, then it needs to start considering corrective action. If countries that are exceeding 3%, however, are on a trajectory towards getting 3%, such as through economic growth, it would not necessarily make sense for that country to raise taxes or reduce spending, for example.