In the light of the European sovereign debt crisis and persistent sustainability concerns, it is more important ever to make a credible commitment to stability-oriented fiscal policies. This is a necessary condition for fiscal policy to be in a position to support and complement he ECB’s monetary policy. So is the establishment of IFC a panacea? Should their role be enhanced or remain just advisory, acting as watchdogs, with certain limits? And how can we guarantee their independence when they depend on government funding?
The issues you mention are indeed critical. Their main target is to bring into surface the fiscal problems and provide useful and real insights & solutions to the governments. But is the degree of their independence that plays a crucial role in whether they will help addressing the problems or covering them up.
After recognising the real problem,its immediate causes are needed to be explored in detail.Thereafter,a strict action by the regulator is needed to bring the economy back in full swing.Please note that advisory role played by various agencies may not create the desired result.
are politics/ politicians able to solve the problem really? are they committed enough, do they have a real solution, and do they have enough political goodwill?