Looking ahead, it is crucial to underpin the fiscal policy framework with decisive action, strong peer pressure and consistent implementation of the rules of the Treaty and of the Stability and Growth Pact. Countries should maintain budgetary positions close to balance or in surplus over the cycle, and, where this is not yet the case, take the required structural consolidation measures.
This also creates the necessary room for the operation of automatic stabilisers. At the same time, governments are advised to place the emphasis on growth-oriented consolidation policies that strengthen the productive forces of the economy. By strengthening confidence, a credible medium-term fiscal consolidation strategy will also support economic growth in the short term.