Harvest today’s windfalls for tomorrow’s shortfalls

Favourable economic conditions over the past couple of years have provided Member States’ governments with a precious opportunity to improve the sustainability of their budgets. Whilst those with excessive deficits have done well to bring them down, too little has been done by most Member States to reduce deficits further. The opportunity of good economic conditions should enable all Member States to improve their budgetary frameworks for the longer term, but few are taking real advantage of this. The preventive arm of the Stability and Growth Pact – which has been overshadowed by the deterrent function embodied in the excessive deficit procedure – provides the tools to help Member States improve their budgetary situation for the future, so the Commission is recommending ways to make it more effective.