At the risk of repeating myself: fiscal policy serves many other legitimate objectives, and there are many constraints, especially in a monetary union where fiscal policy is and will remain primarily a responsibility of national governments. So the Stability and Growth Pact continues to serve an important purpose. My argument today is about evolution, not revolution.
What I will do is outline three features that I think would help to make the current framework more effective in allowing national fiscal policies to stabilize the economy at the euro area level. And to encourage greater alignment between central bank and government policies.