But even if markets will have stabilized, debt stabilization will require many years of substantial primary surpluses. BIS central bankers’ speeches  5  –    The fourth lesson to be learned from the crisis is therefore that we need to improve fiscal policy frameworks.
We need a long-term commitment to fiscal stabilization at the national level and effective warning and supervisory mechanisms at the European level. We need to make sure that – once the worst is over – good economic times are used for fiscal consolidation so that fiscal margins are there when the next recession approaches. An exceptional crisis calls for exceptional measures.