The Government shares the aim of reducing the ratio of public debt to GDP. This goal is nonetheless pursued not by focusing on the achievement of budgetary balance but rather on the stimulus imparted by fiscal expansion. It envisages a significant reduction in the primary surplus in 2019; it does not contemplate a rebalancing in subsequent years.
European policymakers have taken a number of actions to address the crisis, but more will likely be needed to stabilize euro-area banks, calm market fears about sovereign finances, achieve a workable fiscal framework for the euro area, and lay the foundations for long-term economic growth. U.S. banks have greatly improved their financial strength in recent years, as I noted earlier.