This just leaves the second course of action: that is, an improved Maastricht framework, a “Maastricht 2.0”. Among other things, that means strengthening the rules on borrowing – the Stability and Growth Pact not only needs teeth, it also has to be able to bite. The rules have since been tightened – now they have to be applied and complied with.
Notably, the run-up in prices of energy, especially gasoline, and food has reduced consumer purchasing power. In addition, the supply chain disruptions that occurred following the earthquake in Japan caused U.S. motor vehicle producers to sharply curtail assemblies and limited the availability of some models.