to foster competitiveness and employment, to contribute to the sustainability of public finances and to reinforce financial stability. The pact has been reinforced by the statement made by the Heads of State or Government of the euro area on 21 July 2011 (see also Trichet, 2011). In particular, it has been reaffirmed that fiscal consolidation is a primary goal of member states.
In this regard all countries not under a programme will have to achieve a deficit below 3% by 2013 at the latest. Indeed countries that have experienced turmoil in their sovereign debt market have already taken unprecedented measures to ensure sustainability of public finances.