EU countries show stable budget deficits over decades, defying economic predictions.
The study tested if European Union countries' budget deficits stayed the same over time from 1971 to 2006. They used a method that considers countries' relationships and possible changes in the data. The results show that EU countries had stable budget deficits throughout the whole period, even when accounting for structural changes. This means that the deficits didn't change much over time, even before and after the Maastricht treaty.