This document discusses the Stability and Growth Pact (SGP) which establishes fiscal rules for EU member states. The SGP requires countries to maintain an annual budget deficit below 3% of GDP and a national debt level below 60% of GDP. If a country exceeds these limits it is subject to excessive deficit procedures and sanctions. The document argues that the SGP is problematic because the rules are applied over only one year rather than whole business cycles, rules are inconsistently applied across countries, and key terms are vaguely defined. It concludes that given Ireland's current economic situation, it may be time to loosen the SGP rules to allow Ireland more flexibility with fiscal policy.