Unfortunately, however, the rules of the Pact have been ignored all too often – even prior to the financial crisis. For this reason, it is imperative that, first, fiscal consolidation efforts at the European level comply with the rules of the Stability and Growth Pact. Second, the foundations of the Stability and Growth Pact are in need of reinforcement. 2.
Sustainable economic growth  Stable prices are a precondition to sustainable growth and the generation of employment. Equally important is the competitiveness of euro area member counties. In some euro area countries, excessive increases in unit labour costs and current account imbalances have caused their competitiveness to decline significantly over the past few years.