Assessment and Recommendations
I. Macroeconomic Performance
-Macroeconomic developments: the economy is cooling off
-A supportive macroeconomic policy led to strains in the economy
-Challenges for fiscal policy in the medium term
-The fiscal stability law
-Prospects
II. Reform Options to Boost Sustainable Growth
-Labour market reforms
-Product market reforms
-Financial market reforms
-Public sector issues
III. Ensuring the Long-Term Financial Viability of the Pension System
-The ageing process will occur later but will be more severe than in other countries
-Institutional arrangements for supporting the elderly
-The impact of ageing on public finances
-The options for reform
Annex I. Changes to the Method of Calculating the Consumer Price Index
Annex II. The Liberalisation Package of June 2000
Annex III. Recent Labour Market Reform Issues
Annex IV. Uncertainties Regarding the Demographic Projections
Annex V. The Toledo Pact: Measures to Improve the Public Pension System and their Impact
Annex VI. Internal Rate of Return of the Public Pension System
Annex VII. Corporate Supplementary Pension Systems: Pension Funds and Insurance Contracts
Annex VIII. Calendar of Main Economic Events