Moreover, there will also be increased spending on pensions, healthcare, and long-term care due to both political decisions and demographic change. 5/13  And, lastly, a lower debt ratio would also be important for government to be well prepared again ﬁnancially to face a potential future crisis. At this juncture, we do not expect the need for consolidation to be exceptionally high.
It should, moreover, be possible to spread the consolidation appropriately across the economic recovery process. To this end, central government will have nearly € billion worth of reserves at its disposal for the transitional period. Cyclically-induced deﬁcits are likewise permitted.