Why is co-ordination of fiscal measures so important?
The benefits of individual Member States’ fiscal measures will be much greater if they are part of a co-ordinated European response which will create multiplier effects. Equally, countries who try to “go it alone” tend to run into problems; they get punished by capital outflows; some of their stimulus leaks into imports from other countries and they get nothing in return. A co-ordinated approach will avoid these difficulties.
