As you know, financial sector support and the budgetary loosening in the context of the financial and economic crisis has – in most euro area countries – caused sizable fiscal imbalances. Meanwhile, most countries in the euro  2  BIS Review 34/2010  area have exceeded the 3% reference value for the deficit ratio.
Under these circumstances, the Stability and Growth Pact, which has been put in place to safeguard sound and sustainable fiscal positions, should be rigorously applied. The ECB calls to strengthen the governments’ commitment to strictly adhere to its provisions.