But structural reforms and consolidation are often hard to disentangle. For example, a  BIS central bankers’ speeches  3  bloated public sector or very generous pension system are both a drag on growth and a burden on the budget. And another question is: are these normal times? It is quite obvious that everybody views public debt as a major threat.
The markets do, politicians do and people on the street do. A wide-spread lack of trust in public finances weighs heavily on growth: there is uncertainty regarding potential future tax increases, while funding costs rise for private and public creditors alike. In such a situation, consolidation might inspire confidence and actually help the economy to grow.