But would this commitment be sufficient to align the incentives of all the actors involved? In the economic jargon, is this promise “time consistent”? Or will other economic agents expect the policy-maker to deviate from its stated intention and adjust their actions accordingly?
Special emphasis should be placed on areas with a potentially higher impact on competitiveness, economic growth and employment, simultaneously promoting social cohesion. Member States’ economic policies and macroeconomic imbalances are an issue of common interest and therefore require a “win-win” concerted response. The “European Semester” and the “Euro-Plus Pact” are important improvements in this area.