For all euro area countries, the 2011 budgets need to reflect the commitment to ambitious fiscal consolidation in line with countries’ pledges under the  2  BIS Review 130/2010  excessive deficit procedures. Any positive fiscal developments that may emerge, reflecting factors such as a more favourable than expected environment, should be exploited to make faster progress with fiscal consolidation.
The urgent implementation of far-reaching structural reforms is essential to enhance the prospects for higher sustainable growth. Major reforms are particularly needed in those countries that have experienced a loss of competitiveness in the past or that are suffering from high fiscal and external deficits.