The Pact provides for a degree of flexibility that is sufficient for the current circumstances. Any loosening of the framework beyond that level is not warranted, as it may pose the risk of eroding the incentive mechanisms. Fiscal strategies should respect deadlines for the correction of excessive deficits set by the ECOFIN Council in line with the Stability and Growth Pact.
Fifth, in any case, fiscal consolidation cannot be limited to the correction of excessive deficits. The pace of consolidation needs to be maintained and stepped up in good times until the medium-term objectives are achieved. The crisis has clearly demonstrated that countries that failed to build up safety margins during good times had little or no capacity to counter the economic downturn.