Hence, countries facing fiscal challenges should design credible multiannual fiscal consolidation programmes, whose objectives should be clearly and openly communicated to the public. However, governments which apply austerity programs loose political capital. This is because fiscal consolidations hurt growth and deepen the recession, hence reducing living standards.
Likewise, we must continue our determined policy of supervision of the banking system, through cooperation with the banks. In connection with this, concerns are growing about the credit repayment ability of several companies in the economy, and we must be aware of that. Many are now asking if the current situation is worse than what happened in 2008.