The Commission's report sets out the need to adopt a net revenue-raising strategy over an appropriate timeframe through broadening the tax base to address fiscal sustainability challenges. Alongside this, maintaining credible and meaningful benchmarks in EU and domestic frameworks to anchor fiscal policy is important, and an expenditure-based rule has benefits, especially when linked to the nominal trend growth rate of the economy.
Concluding remarks To conclude, the economy has proven resilient through a period of heightened uncertainty, in part reflecting the capacity for the public finances to operate in a countercyclical manner and provide support to households and firms in response to external shocks.