Graph of the week

This week we take a look at an interesting figure showing the target levels of the new eurozone treaty (signed last week).

Source: The Economist, Daily chart

As the Economist says, "this time we really mean it!" The level of insubordination of the eurozone countries is astonishing. While some were balancing around the target in pre-crisis times, trying to cope with it, others were outright irresponsible, particularly right about after the credit squeeze in 2009, when the debt levels and the deficits soared.
The debt levels are at an even worse state, knowing that the Maastricht target was 60% of GDP. How will the automatic punishments suppose to handle all of this and prevent further political mischief is still rather puzzling to me.


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