Policy makers have been incorporating a broader range of regulatory approaches to protect consumers from inappropriate market practices, assist consumers to make better-informed decisions regarding the use of financial products and services, and ultimately achieve better outcomes for consumers. However, to be effective, such regulatory frameworks must be operationalized, including through supervision.
Fiscal rules, as they have now been designed, agreed, and enshrined, in particular in the six-pack and two-pack legislation as well as the Fiscal Compact, are an important step forward. These rules are designed by reference to structural deficits, thereby assigning clear and realistic medium-term objectives, while allowing for the absorption of cyclical shocks.