The first proposition is that in a monetary union, which is characterised by a single monetary policy and decentralised national fiscal policies, there is a need for a fiscal policy framework that ensures that excessive budget deficits are avoided over the medium term and that national fiscal policies are effectively coordinated to that end.
In other words, the speed of development and the pace of the reforms should be carefully weighted against people’s capability to absorb relevant shocks. The ultimate goal is to improve people’s living standard. Second, importance should be attached to properly addressing the issues in the development of agriculture and the rural areas, particularly in those countries where agricultural population constitutes the overwhelming majority.