Lower public debt also contribute to reducing divergences between Member States, as debt ratio differentials lead to variations in the fiscal space available to each country to stabilize the economy after a shock and to finance growth-enhancing expenditure. Therefore, in such an uncertain economic environment, it is imperative to strengthen fiscal sustainability and increase the resilience of public finances to adverse shocks. 2.
The second pillar should reinforce the incentive of national authorities to increase the resilience of their economies by strengthening their fiscal buffers in good times. So, the principle of fiscal policy counter-cyclicality should be promoted in the SGP reform. What is crucial is to safeguard (and even promote) economic recovery and restore fiscal sustainability in a sustainable way.