A holistic and systemic global – or at least European – approach is needed, to the widening of risk assessment and coordination with other partners along the value chain, so that risk and crisis management procedures can be optimised. Fourthly, in a rapidly changing global financial market, innovative products are developed.
Of course, the strengthening of growth potential is necessary in terms of improving fiscal balance, but the associated natural increase of tax revenue alone is not enough to ensure fiscal sustainability. Overcoming deflation is also important, but this has a limited effect on improving fiscal balance because past experience shows that rising inflation not only boosted revenues but also increased expenditures.