Press Release: 2009 Report on Public Finances: fiscal stimulus was needed to support economy, but overall success depends on a credible exit strategy

As the European economy suffered its worst post-war recession, the European Recovery Plan provided needed fiscal support to ailing economies. But rising public debts and the contingent liabilities incurred by governments to support the financial sector, together with the prospected increases in age-related expenditure and slowdown in potential growth raised concerns about public finance sustainability. An exit strategy strengthening fiscal policy frameworks, reforming age-related spending and spelling out the broad consolidation measures envisaged when the recovery has taken hold was required to address these concerns and underpin consumer, business and financial market confidence, the 2009 Report on public finances showed.