The cyclically adjusted primary surpluses – which reflect the consolidation efforts – have remained steady or even declined of late. Favourable economic developments should not obscure the fact that there is still some way to go if we are to safeguard public finances.
It is crucial for the sustainability of public budgets to remain beyond reproach, even if the interest rate setting returns to normal or the economic situation takes a turn for the worse and, for instance, the automatic stabilisers take effect. However, finance ministers are not the only ones being called upon to take action in the current phase of low interest rates.