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Budgetary rule.
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3.— (1) The budgetary rule is that for each year either—
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(a) the budget condition (set out in subsection (2)), or
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(b) the adjustment path condition (set out in subsection (4)),
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is satisfied.
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(2) The budget condition is that either—
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(a) the budgetary position of the general government is in balance or in surplus, or
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(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.
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(3) The requirement in subsection (2)(a) shall be deemed to be respected if the annual structural balance of the general government is at the medium-term budgetary objective.
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(4) The adjustment path condition is that either—
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(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 1997 surveillance and coordination Regulation, or
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(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.
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