This benchmark is a rule which contains the net growth rate of government spending at or below a country’s medium-term potential economic growth rate, depending on the country's position in relation to its medium-term budgetary objectives (MTOs).
The preventive arm of the stability and growth pact (SGP) supports EU governments in achieving their commitments on sound fiscal policies and coordination by setting for each country a budgetary target.
Since 2024, Member States are no longer required to submit stability or convergence programmes to the Commission and the Council following the entry into force of a new economic governance framework.