Fiscal Policy Stance in the Euro Area

The budgetary position na miata master cylinder in the euro area and the EU improved significantly in 2007 compared to the previous year.The headline deficit declined to 1.6 % of GDP in 2006 and 1.1 % of GDP in 2007, down from 2.

5% of GDP in 2005.The structural budget deficit diminished from 2% of GDP in 2005 to 0.8% in 2007, reflecting a restrictive fiscal policy in euro ecoalf baku area.The fiscal policy became pro-cyclically because the economy of euro area is characterized by a slightly negative output-gap (estimated at 0.

2% of potential GDP in 2007).

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