Slovakia drafts law for 60% public debt ceiling.

By bne IntelliNews October 5, 2011
Slovak lawmakers have prepared a constitutional amendment that will set a debt ceiling for public finances of 60% of the GDP, SITA news agency reported. The parliamentary finance committee unveiled on Tuesday the draft law, which envisages sanctions to be applied in case the public debt exceeds the 50% threshold and a confidence vote for the government if it reaches 60%. The draft law is now open for a public debate for a month. It is planned to take effect as of March 2012. All parliamentary parties have declared readiness to support the law, which should improve Slovakia's credibility in the eyes of investors. The countrys public debt-to-GDP ratio is currently 40%, well below the EU ceiling of 60%, a limit vastly exceeded by debt-laden euro zone members like Greece and Italy. The Slovak government targets a budget deficit of 4.9% of the GDP for 2011 and aims to cut it to below 3% by 2013.

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