As regards fiscal policy, in several Member States public finances appear to be on track to meet or even exceed this year’s targets as the favourable economic situation, revenue windfalls and effective consolidation measures exert a positive influence on fiscal balances. However, in other countries, the current fiscal outlook suggests a shortfall in terms of the required structural improvement in public finances.
Restoring confidence is clearly a necessary step in what will be a very difficult road ahead for a number of countries. These events again remind us of the very hard choices that countries can be forced to make if prudent policies are not implemented in the good times.