The Stability Council strengthens the institutional framework for safeguarding the long-term sustainability of public budgets on the federal and Länder levels.
The council's purpose is the early identification of coming budgetary emergencies so that appropriate counter-measures can be initiated in a timely manner.
The Stability Council plays an important role with regard to compliance with the EU requirements for budgetary discipline.
The Council monitors the budgets of the Federation, Länder, local authorities and social insurance funds, to make sure that they, comply with the upper limit for the general government structural deficit of 0.5% of GDP, as stipulated in the Budgetary Principles Act.
It assists the Stability Council in carrying out its task of monitoring compliance with the upper limit on the general government structural deficit.