The consolidation of public finances is indispensable, not least in view of the to be expected strains and burdens on future generations from demographic changes. The Stability and Growth Pact should be seen as part of a comprehensive strategy to avoid pro-cyclical behaviour, to create sufficient budgetary safety margins and to attain sustainable public finance.
•  The RTGS environment requires participants to maintain adequate balances on their settlement accounts at the Bank and not rely on the central bank to fulfil that obligation. •  Liquidity provision by the Bank should not come at the expense of local interbank money market development.