Although the government cannotexceed its borrowing cap by law, perversely that does not prevent Congress passing legislation that creates unfunded spending commitments.
Canada's banks face high capital requirements and a cap on their leverage, such that their assets cannotexceed 20 times their capital (a lot less than the corresponding figure for many Wall Street firms and European banks).
In practice, despite all the tough talk at the finance ministers' meeting, a de facto loosening of the budget limit seems likely: the European Commission cannot impose fines on countries that exceed the limit without permission from the other countries' governments.