Second, increases in budget deficits could raise concerns about an  2  Measured by the change in the general government deficit. BIS Review 81/2009  3  increased tax burden in the future, leading consumers to save rather than spend any additional income. This would also undermine the effectiveness of any further fiscal stimulus.
Looking ahead, the main priority for euro area governments must be to devise exit strategies that remedy those large fiscal imbalances and reduce governments’ direct involvement in the financial sector.