The expected increase in private investment will be encouraged by greater confidence among economic agents regarding improved economic prospects, but also by the positive effects brought about by a slide in both the inflation and interest rates, on top of a stable exchange rate.
We have set up these new mechanisms, but their positive effects on the credibility of government fiscal policies are not yet visible. And the government changes that have taken place in some of the more exposed countries have not yet had much of an effect on the continuing fragility of financial markets. Fundamental questions are being raised and they call for an answer.