Assessment and recommendations I. Recent developments and short-term prospects -A buoyant economy -Still subdued wage and price developments -A strong external position -Short-term outlook II. Macroeconomic policies -Monetary union prompts new challenges -Monetary policy -Fiscal policy III. Implementing structural reform: a review of progress -Overview The labour market -Taxation -Product markets -Financial markets -Assessment IV. The health care system -The institutional set-up changed significantly in 1993 -Performance remained strong despite budget austerity -Some problem areas have remained -Reform strategies Glossary of acronyms Bibliography Annex: Calendar of main economic events Statistical annex and structural indicators