Assessment and recommendations

I. Establishing the basis for longer-run growth

-Overview

-Improving macroeconomic fundamentals

-The impact of structural adjustment

-Medium-term perspectives

II. Monetary and fiscal policies

-Overview

-Monetary Policy

-Fiscal Policy

III. Towards more efficient government: reforming federal fiscal relations

-Introduction

-Inter-governmental relations: consensus and coordination

-The fiscal equalisation system

-Implementing the Stability and Growth Pact: the need for a domestic equivalent

-Matching expenditures and revenues: the case for greater state autonomy

-Summing up

IV. Implementing structural reform: a review of progress

-Dimensions of the employment and unemployment problem

-Progress in labour market reform

-Improving skills, entrepreneurial dynamism, and competition

-Overview of progress in structural reform

Annex I: Simulating business sector employment and investment

Annex II. Productivity and structural unemployment

Annex III. Chronology of main economic events

Annex IV. Statistical annex and structural indicators