Having said that, we do see room for improvement in the way the fiscal rules are implemented. In particular, there is a need to ensure the pursuit of prudent fiscal policies in good times and for a stronger focus on public debt and sustainability.
In this respect, some of the Commission’s proposals concerning the so-called “preventive arm” of the Pact are welcome and warrant further consideration. As regards the so-called “corrective arm” of the Pact, however, the ECB is concerned about proposals that could undermine the nominal anchor of 3% for the deficit-to-GDP ratio. This anchor of the fiscal framework is essential for maintaining expectations of fiscal discipline.