•  So coordinated discretionary measures as proposed in the European Economic Recovery Plan are necessary. Coordination among EU Member States is important due to their high openness, as a result of which multipliers are relatively low. Most EU countries (including Austria) are already implementing such programs. In Germany, the coalition just agreed on a EUR 50 billion package last week.
5  •  The importance of discretionary fiscal policy in the current environment has also been recognized by the IMF, as pointed out in a recent staff position note. 6 They also call for timely and collective measures. The measures should be “lasting” because the downturn might be lasting, and “contingent” because it might get worse.