So when the crisis erupted, many countries had little resilience, and the need for consolidation soon became evident. Uncertainty about US fiscal policy is another risk factor. At a time with weak domestic demand and low confidence in the private sector, many countries are compelled to pursue tight fiscal policies due to large government deficits and debts.
These countries are to a large extent paying for the sins of the past. On the other hand, it should also be emphasised that consolidation is underway, especially in many European economies, and medium-term strategies to ensure fiscal sustainability are in place.