In the medium term, the operation of the mechanism, with the involvement of the European Commission, the ECB and the IMF, imposes a tighter discipline in respecting time schedules, provides a valuable source of know-how in elaborating and implementing economic policy, and bolsters market confidence. 3.
In the long term, the relatively lower cost of borrowing reduces the interest burden on public debt, thereby providing further support to fiscal consolidation. The aim of the support mechanism is to facilitate and ensure the implementation of structural reforms which, apart from being absolutely essential, should have been carried out long ago.