The view is that the best contribution that fiscal policy can make, to ensure a return  BIS central bankers’ speeches  9  to a sustainable medium-term position, is to adhere to the programme targets that have been set.
In this regard, it is encouraging to see that the scale of planned fiscal adjustment in 2012 and 2013 has been increased slightly to ensure that the agreed deficit targets in those years will be reached, despite the projected slowdown in growth.