Output is expected to accelerate modestly, in line with the recovery in the euro area, which would not be enough for unemployment to fall significantly. The economy will benefit from a positive fiscal stimulus and strong growth in neighbouring accession countries. Tax reductions will raise the structural deficit in 2005, notwithstanding ongoing efforts to reduce public sector spendin . Further reductions in government outlays are necessary in view of relatively high debt levels and remaining ageing-related spending commitments. Further steps to improve incentives to work among older workers and women would help to offset the adverse longer-term economic effects of ageing...