As a consequence, after several years of uninterrupted, albeit moderate declines, the aggregate debt-to-GDP ratio in the euro area has started to rise again. In the light of these budgetary imbalances, the Stability and Growth Pact must be implemented.
As you will recall, in November 2003, the ECOFIN Council made a commitment to continuously monitor budgetary developments and to act accordingly if countries did not live up to their obligations. The European Commission has announced its intention to activate the procedures foreseen by the Pact to prevent and deter excessive deficits. We support the Commission’s initiatives.