I am convinced that many of our reform proposals would also be helpful in achieving budgetary consolidation. 3. Fiscal consolidation  The debate on fiscal consolidation and the Stability and Growth Pact can be viewed as the third part of the current backdrop to our conference.
As you know, the deficit ratio in Germany clearly exceeded the 3% limit last year and is expected to do so again in the current year. Under these circumstances, it seems quite obvious that scope for discretionary loosening does not exist.