Recent experience has shown that tough decisions are often taken only on the brink of the abyss, when the fateful consequences of not taking such decisions become all too evident to governments and to those they govern. This creates at least five highly undesirable outcomes, in particular within the European context.
First, it increases uncertainty in financial markets about the course that will ultimately be followed. This explains why spreads have systematically increased when decisions were postponed, even when clear deadlines were set. Second, the longer a decision is delayed, the more unpalatable it ultimately becomes, as the action required to calm the markets and to restore stability has to be even stronger.