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• Debt in the sense of Maastricht (national accounts)

Debt in the sense of Maastricht (national accounts)

Definition

Debt in the sense of Maastricht covers all general governments in the sense of the national accounts: the State, other government bodies (ODAC), local governments and social security administrations.

Debt in the sense of Maastricht is calculated in the framework of the national accounts but it is defined in a specific way. It does not include all financial liabilities but only cash and deposits, securities other than shares which are Treasury bonds (BTF and BTAN), fungible Treasury bonds (OAT), Euro medium term notes (EMTN), as well as loans; excluded are derivative products and other accounts payable and receivable. It is a gross debt in the sense that we do not subtract from the chosen liabilities the financial assets of general governments.

It is consolidated: excluded therefore from the calculation of debt are the elements of a government's debt held by another government. That is the case for example of the deposits of general governments with the Treasury.

Debt in the sense of Maastricht is evaluated in nominal value, that is, at the repayment value of the principal. As such, accrued interest not due or fluctuations in the prices of securities are not included in the evaluation of instruments, whereas the re-evaluation of the securities repayment value indexed to inflation (OATi, BTANi and CADESi) is taken into account.

Note

The Maastricht treaty, which entered into force on 1 November 1993, defined five convergence criteria that Member States must fulfil to move to the single currency, the euro. Two criteria relate to the control of public deficits : the public finance deficit must not exceed 3% of GDP for all General government and public debt must be limited to no more than 60% of GDP.

Annual government debt is notified to the European Commission twice a year, at the end of March and end of September. Quarterly debt is sent to Eurostat 90 days after the end of the quarter.