While some countries will maintain a sound budgetary position, a significant number of euro area countries are expected to record deficits near to or above 3%. The aggregate euro area fiscal deficit-to-GDP ratio is expected to increase somewhat, as is the debt-toGDP ratio. In the coming years, important challenges for the consolidation of public finances will have to be faced.
Member States need to renew their consolidation efforts and should not rely on one-off measures, so as to comply with their commitments under the Stability and Growth Pact and to foster confidence. They must also set the right priorities in public finances, towards structural reform, innovation and competitiveness.