The sustainability of public finances in a turbulent economy
(bron: European Commission - European Economy News)
The Sustainability Report 2009 concludes that fiscal policy in most Member States is not sustainable. Fiscal stimulus and other measures intended to re-start the European economy were necessary and successful, but have brought with them a large increase in government deficits and debts. Moreover, the projected impact of ageing populations is expected to dwarf the effects of the crisis many times over. Nonetheless, the success of several countries in getting their finances under control shows that it can be done. Fiscal strategies to reduce deficits and debt should be coupled with structural reforms of labour markets and social protection systems – particularly public pension and healthcare regimes.
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