The Bundesbank has drawn up some proposals on that front. [21] Two aspects are key in avoiding problems arising from the short-termism of fiscal policy decisions. First, we need to set quantitative limits as crash barriers. These limits need to be sufficiently ambitious. In other words, complying with them should result in sound government finances.
This also involves a reliable reduction of high debt ratios. The quantitative requirements set out under existing rules are entirely suitable in this regard. Focus should be on the MTO of a structural budgetary position that is close to balance.