This would risk a repetition of the  BIS Review 17/2004  1  policy errors of the last economic upswing, when insufficient consolidation efforts and tax cuts without adequate expenditure restraint laid the foundations for the recent fiscal difficulties. All Member States would benefit from the strengthening of the sustainability of their public finances.
Determined implementation of comprehensive structural fiscal reforms, on both the expenditure side and the revenue side, will bring additional medium-term rewards in the form of higher growth and more sustainable public finances. Such consolidation and reform strategies are needed to secure a sound macroeconomic environment in the euro area, which in turn enhances confidence and promotes investment, growth and employment in the euro area.