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The global economic and financial crisis has created important needs for fiscal consolidation in EU countries and around the world. It has also demonstrated the cost of financial instability for the real economy - and the taxpayer - as well as the importance of new public policy measures to build a more robust financial system in which financial institutions are required through taxes and regulatory measures to internalise the social costs of their activities. In addition, resources must be found to meet key global challenges with significant budgetary implications in the areas of climate change and development policy.
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