Such spending may well crowd out the provision of other types of public services. Fiscal and monetary stimulus directed at improving employment conditions and federal support for housing finance will ultimately strengthen the housing market. However, we also need measures that directly address the foreclosure problem. In designing such measures, we must consider the different types of borrowers.
The stability and growth pact in EU has been discussed on several occasions over the years. At the core is that countries should keep their budgets close to balance to have room for letting the automatic stabilisers work also during periods of weak activity.