Our past experience in applying the Pact, especially after weakening of its core provisions in 2005, have amply demonstrated that a reform of these procedures has to be a sine qua non of a determined response to the current crisis.
Personally, I prefer dynamic provisions but any of the methods is preferable to the existing situation. 4. Correction of the pro-cyclical bias of present accounting standards, which allow profits to be increased with unrealized capital gains in periods of booming asset prices, and exaggerate declining profits in bad times through the effect of unrealized capital losses.