That said, prevention and correction of fiscal and macroeconomic imbalances must be given priority as it is the pre-condition for sustainable economic growth and financial stability. As the ECB has stressed on a number of occasions, here a “quantum leap” forward is needed in strengthening the Stability and Growth Pact and creating an effective new framework for surveillance of macroeconomic imbalances.
In that context, as we approach the legislated asset ceiling of € different options should be considered around the evolution of the fund in the future, both in terms of its size as well as its use. Addressing infrastructure constraints that limit sustainable growth, while further supporting a transition to a more resilient economy remains important.