In addition to monetary policy and the responsible behaviour on the part of the social partners, fiscal policy is also responsible for ensuring sound long-term growth. In order to achieve this, fiscal policy must continue the process of consolidation as laid down in the Stability and Growth Pact and in the national stability programmes.
At the same time, fiscal policy must create an attractive economic environment for business investment and for the supply and demand of labour. In this respect, most national governments of the euro area have already taken steps in the right direction. Lower tax rates on businesses and households is, in this respect, very welcome.