It is important to note that all euro area countries must honor the commitments made to achieve budgets close to balance or in surplus by 2003/2004. Fiscal targets have to embody sufficiently ambitious structural consolidation efforts and have to be based on realistic growth assumptions.
Any weakening of the elements of the Stability and Growth Pact would raise concerns about the credibility of EMU and could erode the confidence in the stability-oriented policy framework of the euro area. 2  BIS Review 46/2002  4)  Structural Policies  Structural reform is the third pillar of success for Europe's monetary union, especially in the longer term.