That would not only avoid overtaxing future generations; it would also make a major contribution to achieving faster growth and more employment. After all, public confidence in the future can be strengthened only by a fiscal policy that is predictable and based on government finances which are sustainable in the long term.
By contrast, a lack of confidence in the future gives rise to uncertainty, encourages greater precautionary saving and reduces the propensity to consume. If the emerging upturn is to be sustained, we need fiscal policy consolidation together with clear economic policy guidelines and ambitious structural reforms.