A fiscal stance that takes account of the condition of the euro area economy and is aligned with the monetary stance of the central bank. After all, decisions on spending and taxation are the responsibility of national governments. Discretionary fiscal stabilization policy is possible, but only as long as the conditions of the SGP are satisfied.
Instruments which are used in one of the three policy areas inevitably affect the other two; that makes it essential to clearly specify the objectives of each activity and to clearly adjudicate on conflicting goals. As is often the case in complex relationships, we could spend the whole day studying each side of this relationship.