But, in many cases, it will also be essential to review government commitments, especially their less productive elements. Turning to the second challenge, the current very high expenditure shares may also be a reflection of the way in which fiscal policy frameworks operate at the national level.
The experience shows that some euro area countries have managed to translate the constraints under the EU fiscal framework effectively into their domestic fiscal policy institutions. As a consequence, these countries find it much easier to comply with the requirements while maintaining sole responsibility for their policies.