Although inflation seems set to be low for a while, the time will come when the economy has begun to strengthen, financial markets are healing, and the demand for goods and services, which is currently very weak, begins to increase again.
However, debt ratios remain at record highs and risks to the sustainability of public finances persist in several countries. Fiscal space for expansionary policies is limited and further consolidation is needed. Against this background, fiscal-structural reforms gain prominence as an approach to improve the efficiency and quality of public finances.