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Let's be clear: raising taxes during a very slow recovery is likely to lead to another recession, and it will do absolutely nothing to balance the budget.

The government is determined to continue the process of fiscal consolidation and structural reform in order to secure sound public finances and improve the country's international competitiveness.

Fiscal discipline can turn the economy around.

It certainly would be helpful going forward for deficit reduction efforts to focus on the medium term while not subtracting from the impetus we need to keep a fragile economy moving forward.

Near-term deficits are temporary and manageable if - and only if - we keep spending in check, the tax burden low and the economy growing.

The unique danger today is the possibility that we may face longer-term stagnation as a consequence of relying too heavily on borrowed money.

Well, a deficit reflects an imbalance between spending and revenue, and so narrowing it requires acting on one, the other or both.

We've used up a lot of bullets. And we talk about stimulus. But the truth is, we're running a federal deficit that's 9 percent of GDP. That is stimulative as all get out. It's more stimulative than any policy we've followed since World War II.

Deficits must be cut, yes, but the rush to austerity risks undermining the fragile global recovery.