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Flexibility is the magic word

Strong incentives are what is needed to combat the downturn, writes the Dutch daily Trouw, but adds that such a plan also entails risks: "For when a government starts using money to boost the economy public debt increases. And it is the European Commission that has the task of ensuring that countries adhere to the Stability Pact for the euro. ... Many countries will quickly transgress that limit next year. That's why flexibility is now the magic word in Brussels. ... In practice the member states will be given enough time to rebalance their deficits. This plan could work out well if the recession doesn't go on for too long. If the economy starts growing again in a year's time, the deficits can be reduced. But if the measures are not very effective the problems will accumulate. Then the member states will pay the penalty for their high deficits for years to come."

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