The current excessive deficit procedures, and above all the case of Germany as not only the largest economy but also the “source” of the Pact are the real test. In this way, confidence in the credibility of the rules and in prudent fiscal policies can be reinforced. This will not be an easy task, admittedly, and serious concerns have been expressed.
As for the outlook of the economy, the implementation of the supplementary budget for fiscal 1998 is assumed to boost demand through additional public works and special income tax-reduction, and cease the negative interactions of production, income, and expenditure.