This is why we encourage all governments concerned to display their willingness to abide by the rules of the Stability and Growth Pact. By doing so, they will reduce public spending, which is conducive to growth through the alleviation of unproductive spending and reduction of costs in the economy.
By doing so, they will credibly reduce public finance deficits, which is conducive to growth by helping diminish medium and long-term market interest rates. By doing so, they will improve the confidence of the household and business constituencies, notably by guaranteeing that taxation will not increase in future years and therefore they will foster growth through more dynamic consumption and investment.