Cap. 534 Art. 8Budgetary rule.

(1) The budgetary rule is that for each year either:

(a) the budget condition, as set out in sub-article (2), or

(b) the adjustment path condition, as set out in sub-article (4), is satisfied.

(2) The budget condition is that either:

(a) the budgetary position of the general government is in balance or in surplus, or

(b) the requirement in paragraph (a) is not met only as a result of exceptional circumstances and the failure to meet it does not endanger fiscal sustainability in the medium-term.

(3) The requirement in sub-article (2)(a) shall be deemed to be respected if the annual structural balance of the general government is at the medium-term budgetary objective.

(4) The adjustment path condition is that either:

(a) the annual structural balance of the general government is converging towards the medium-term budgetary objective in line with the timeframe set in accordance with the Council Regulation (EC) No. 1466/97, or

(b) the requirement in paragraph (a) is not met only as a result of exceptional circumstances and the failure to meet it does not endanger fiscal sustainability in the medium-term.