Such comprehensive and systematic consolidation and reform efforts will enhance the credibility of the revised Pact, help to establish confidence in a sound and growth-friendly fiscal environment and boost consumer confidence, thus fostering economic activity and employment growth.
Support for the global economy and financial markets, however, has come in the form of a quick ‘change of tack’ by the world’s major central banks, as they shifted from a gradual removal of stimulus to indicating renewed easing, at least in the US and the eurozone. The lack of inflation pressures provides room for such an approach.