This Pact stipulates, among other things, that Governments commit themselves to achieving balanced budgets or fiscal surpluses over the medium run. In practice, the Stability Pact has so far been taken very seriously, and the majority of EU countries already exhibits budget surpluses. Also Austria has commited itself in its so-called Stability Program to achieve a balanced budget by next year.
When a bank runs into difficulties, taxpayers should be the last port of call rather than the first. This sequence of liability is compatible with the no bail-out principle and strengthens market discipline for banks. Two weeks ago, the EU finance ministers agreed on a liability framework of this kind.