Budget consolidation and fiscal policy

In his keynote address delivered at the 61st Ifo Annual Meeting, Martin Zeil, Bavarian State Minister for Economic Affairs, Infrastructure, Traffic and Technology, examined budget consolidation and fiscal policy. At the outset Zeil stressed the need to introduce financial discipline throughout Europe and to prevent the EU from slipping into a transfer union. Budget consolidation has the highest priority and should begin by cuts in spending. The second task facing Germany is the creation of the basis for sustainable growth. And thirdly the system of taxation must be made more transparent and more just.