On the other hand, the top performing countries in the euro area in terms of recent budget balances, all have been proving that sound fiscal policies and productive economic structures actually contribute to positive economic developments. I sincerely hope that the new Member States and accession countries do not draw misguided conclusions from the latest adaptations to the Stability and Growth Pact.
It is of utmost importance to recognize that potentially lax fiscal policies in the new and future EU Member States carry the high risk of triggering detrimental convergence expectations, which would bring about significant “divergence costs” in financial markets and economic performance.