This has placed some governments in a very difficult bind, since the heightened focus on sustainability has increased the pressure for fiscal consolidation at a time when aggregate demand remains weak. The “least-damage path” through the various competing concerns has become harder to tread.
The opposite is true for exports (see Charts 13 and 14). 17 / 22  BIS central bankers' speeches  18 / 22  BIS central bankers' speeches  The recent economic policy orientations and plans set out by the German and French authorities are steps in the right direction. France has already, in recent years, made important progress in addressing these challenges.