There is a risk that, in some countries, fiscal balances may fall behind the targets agreed by the ECOFIN Council for the necessary and timely correction of excessive deficits. It is essential that all governments meet the fiscal balance targets for 2011 that they have announced. Where necessary, additional corrective measures must be implemented swiftly to ensure progress in achieving fiscal sustainability.
These risks include the possibility of further rises in oil and agricultural prices, continuing the strong momentum observed in recent months, as well as increases in administered prices and indirect taxes beyond those foreseen thus far.