Combining fiscal sustainability and growth: a European action plan
Fiscal sustainability is a concern for all member states and requires huge national consolidation efforts. In its report, presented on 15 March 2010, BUSINESSEUROPE's high-level task force proposes a comprehensive agenda combining an exit strategy to cap public indebtedness with an entry strategy to support investment in future growth areas.
- Exit strategy: tighter fiscal rules, greater efficiency of public administrations, credible cost-cutting measures, reforms of pension and health care systems, and a greater role for the private sector in the supply of public services and infrastructure.
- Entry strategy: higher return on education and training, more and better targeted efforts in R&D and innovation, better prioritisation of infrastructure investments, and growth-enhancing tax reforms.
Fiscal sustainability is also tightly connected with the health of the financial sector and the availability of credit for the recovery. Better access to finance must remain a priority in EU's growth agenda.