Get exit strategies ready now, says Commission

Fiscal policymaking in the EU has in 2008-09 been urgently and successfully focused on pulling the economy out of recession. Discretionary measures and in-built fiscal stimuli have cushioned the downturn in economic activity and have been a factor in the recent improvement. However, this has also led to a deterioration in government accounts which, coming on top of the projected demographic developments as populations age, makes the long-term sustainability of public finances an acute challenge, reports a European Commission Communication on the ‘Long-term Sustainability of Public Finances for a Recovering Economy.’ issued October 2009.

Governments need to keep supporting the economy and avoid choking off the emerging recovery. But now is the time to start mapping their consolidation strategies and assess how the crisis has affected their sustainability conditions.

• Primary Source

European Commission: DG Communication: Press Release, IP/09/1510: Sustainability of public finances: a challenge for the future and a condition for sustained recovery http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1510&format=DOC&aged=0&language=EN&guiLanguage=en

European Commission: DG Economic and Financial Affairs: Sustainability of Community finances http://ec.europa.eu/economy_finance/thematic_articles/article15994_en.htm

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