However, the indications for this are still mixed, despite weak economic activity throughout last year. As for fiscal policy, the framework laid down in the Treaty and the Stability and Growth Pact limits the risk of fiscal imbalances occurring, and therefore contributes significantly to favourable financing conditions for the private sector.
At the same time, it allows an appropriate medium-term orientation of fiscal policy which fosters confidence and thereby growth. In order to fully reap the benefits of this framework, it is important that countries respect its objectives and implement appropriate consolidation plans where needed.