In programme countries, we have seen a strong improvement of structural primary balances since 2009. In Greece, for example, this is estimated to have improved by more than 14 percentage points of GDP between 2009 and 2012. To put this into context, in this country, the “sequester” calls for cuts of 1.2 trillion dollars over ten years.
The equivalent of what Greece has done would have meant for the US an adjustment of 1.6 trillion dollars over three years. In EMU, this adjustment is being undertaken within a reinforced fiscal framework – a new set of rules – which strengthens the ability to prevent and correct the accumulation of excessive deficits.