Assessment and Recommendations I. Recent Developments: Recovery and Adjustment -The Current Recovery -Prospects and Risks II. Fiscal, Monetary, and Financial Sector Policies -Fiscal Policy -Monetary Policy: Maintaining Easy Monetary Conditions -Financial Sector Policy: Stabilising the Transmission Mechanism III. Structural Policies to Enhance Growth and Secure Recovery: A Review of Progress -Enhancing Corporate Performance -Supporting the Evolution of Labour Markets -Improving the Framework Conditions for Competitive Markets -Reforms of Pension and Health Care Systems IV. Improving the Performance of Public Spending -Background -Characteristics and Determinants of Public Spending -Issues in Improving the Effectiveness of Public Spending Annex I. Investing for an Efficient Road System Annex II. Chronology of Main Economic Events