Other policy areas have the instruments needed and are thus responsible for solving the structural problems. Decisive action in this field is certainly required to improve growth and employment prospects. Safeguarding sound government finances is a means of strengthening the conditions for price stability and achieving strong sustainable growth which is conducive to employment creation.
In this context, the Stability and Growth Pact sets the right incentives for the conduct of sound and disciplined fiscal policies across all participating Member States. In addition, structural reforms in labour and goods markets, as well as a moderate development of wage costs, can best address the root causes of currently high unemployment in Europe.