Actions that could start immediately include the scrutiny, cost analysis and gradual abolition of the various exemptions from the general tax rules, unless they concern: (a) social groups hard hit by the crisis or living in conditions of poverty or (b) growth incentives providing much-needed stimulus to economic activity. (d)  Lowering tax rates and reviewing the efficiency of public spending.
From 2010 to 2012, economies representing around one-third of euro area GDP carried out procyclical fiscal tightening to restore confidence in their public debt, which significantly contributed to the second recession in that period. Since then, fiscal policy has been broadly neutral. At our last meeting, the Governing Council responded to the continued shortfall of inflation with respect to our aim.