GDP growth has been low for a third year in a row owing to the weakness of financial markets and stagnation in the euro area. It is likely to strengthen in 2004 as exports and business investment pick up. In the wake of the recent sluggish adjustment of the labour market, employment growth is expected to follow the business cycle with a considerable lag. The government should take advantage of the economic upturn to put fiscal policy on a sustainable path, by reducing growth in current public spending in line with lower medium-term growth prospects...