The fiscal costs of the crisis – stemming from discretionary stimulus measures, the use of automatic stabilisers and measures in support of the financial sector – are likely to be considerable. These costs, together with the expected adverse fiscal impact of population ageing, pose considerable risks to future fiscal sustainability.
In the aftermath of the crisis, many countries may not be able to rely on sustained GDP growth to smoothly reduce their debt burdens. This means that ambitious plans for structural fiscal consolidation need to be developed and communicated in order to guarantee the public’s trust in the sustainability of public finances. 4  See, for instance, G.B.