Output is likely to accelerate in 2004, driven by strong private investment and exports, and growth should reach almost 4½ per cent in 2005. Headline inflation is expected to surge once again in 2004, as administered prices are increased towards cost-recovery levels, but to converge subsequently towards the average inflation rate in the European Union. Unemployment will continue to fall, but remain at a high level. The planned consolidation of public finances is welcome. Compliance with the Economic and Monetary Union fiscal rules in 2006, as envisaged by the government, is within reach and would help balance the policy mix. The ambitious structural reforms under way are commendable and, if pursued, would foster sustained increases in output and employment...