In the current circumstances, the Stability and Growth Pact, which has been put in place to safeguard sound and sustainable fiscal positions, is facing its biggest challenge since its adoption in 1997. Therefore, it is now imperative that all euro area countries strictly adhere to the Pact’s provisions.
On the positive side, it is promising that, according to the updated stability programmes, all euro area countries subject to an excessive deficit procedure plan to correct their deficits in line with the Council’s deadlines.