GDP, which rose by 1.9% in 2005, should accelerate in 2006 thanks to the impulse provided by the European recovery. Despite some easing in 2007, growth will probably remain fairly robust and above potential. This cyclical improvement should help reduce unemployment in a context of low inflation pressures. With activity firming, the gradual tightening of monetary policy towards more neutral conditions is appropriate. The improved economic situation and the fiscal outturn should not, however, lead to a relaxation of efforts to control public spending, especially in the social sector, nor of the reform process in product markets aimed at strengthening potential growth, which remains weak.