Highlights

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Despite signs of recovery, the time has not yet come to withdraw government support for the economy, declared the EU finance ministers in Luxembourg on 20 October. Preparing a coordinated strategy for a timely exit from stimulus policies is, however, needed so that all member states can start to improve their public finances within the next two years.

The significant stimulus measures taken by member states in response to the financial and economic crisis have had a positive impact. Although the halt in economic decline, the stabilisation of financial markets and growing confidence are encouraging signs, the recovery still remains fragile.

Ministers agreed that the stimulus measures should not be withdrawn until the recovery was secured and self-sustainable. They concluded, however, that the early design and communication of a common exit strategy would further strengthen confidence in the economy and help anchor expectations.

This strategy, coordinated across countries, should be in line with the budgetary rules set out in the EU's stability and growth pact. Provided that the recovery goes on and gets stronger, all member states should begin fiscal consolidation - that is reducing government deficits and debt accumulation - in 2011 at the latest. The planned pace of this action should be ambitious and will have to exceed 0.5 percent of GDP per year in most member states.

More information:
Council Conclusions (pdf)
Council press release (pdf)
Council webcast of press conference