Similar to the global case, India also responded to the crisis by introducing changes in the existing institutional architecture to further the cause of financial stability.
The first time the Commission applied the new rules, it showed itself to be very elastic, granting Spain, France, Slovenia and Cyprus longer deadlines to make adjustments than those actually envisaged in the Stability and Growth Pact. I believe that such exemptions should be made only in well-founded exceptional cases. For this ultimately weakens the structural consolidation requirements and pushes them into the future.