It is, in fact, precisely the task of this pact to ensure that government budgets can “breath” during the business cycle without breaching the deficit limit of the Maastricht Treaty. Such flexibility is to be achieved through a budgetary position which is at least close to balance over the medium term - in other words, when seen over the cycle as a whole.
Other firms are using different strategies to adjust to the stronger Canadian dollar and to increased competition from abroad. A growing number of firms are looking to cut costs by importing more inputs. Others are phasing out production of goods and services with low profit margins and concentrating on those that yield higher returns.