We can see the primary symptoms. We are now poised to avert the long-term damage and ensure a smooth long-term functioning of the euro area. The need for a rigorous and credible surveillance framework So the period ahead is about two things: fiscal consolidation and measures to strengthen the growth potential of our economies.
Indeed, under numerous scenarios, our current debt path is unsustainable: without changes to taxes or spending, we may reach a point where ever-larger amounts of debt must be issued to pay ever-larger interest charges. To be sure, budget deficits are not always inappropriate, and to a certain extent, the recent fiscal deficits have helped limit the recent economic slowdown.