Note 1-21

21 In the US, for example, the Omnibus Budget Reconciliation Act of 1990 sets a ceiling for "discretionary expenses" such as defense expenses and other policy-related expenses, and established a rule to prevent compensation of insufficient fiscal resources due to policy changes through reduction of mandatory expenses or increase in taxes, with the objective of eliminating the impact of policy changes on the fiscal balance with regard to mandatory expenditure and revenue, including medical fees and unemployment benefits, etc. In the EU, one of the conditions for joining the common currency is to curb the general government fiscal deficit to below 3% of the GDP and to restrain the outstanding amount of government debts to below 60% of the GDP or gradually reduce it, while a surcharge could be imposed in the event that fiscal deficit exceeds a certain limit even after joining the common currency.