Executive Summary
Assessment and Recommendations
Chapter 1. Key Challenges in the Short and Medium Term
-The pressing need for sustained fiscal consolidation
-Closing the income gap with the European Union
-Accelerating the convergence process: the challenges facing economic policy
-The state of the economy
-Annex 1.A1. Recent Macroeconomic Trends
Chapter 2. The Fiscal Challenge
-Public finances are far worse than previously thought
-Accounting revisions of fiscal data for the period 1997 to 2003
-Fiscal developments in 2004: a further deterioration of the fiscal situation
-Medium-term fiscal strategy: putting public finances on a sustainable path
-The fiscal challenges ahead
-The evolution of public debt and debt management strategy
-Medium-term and long-term public sector issues
-Ensuring sustainable retirement income
-Tax reform
Chapter 3. Raising Productivity
-Competition policy reform
-Fostering a knowledge-based economy
-Progress in privatisation and sectoral reforms
-Energy sector
-Telecommunications
-Transport
-Improving the climate for entrepreneurship
-Corporate governance
Chapter 4. Raising Labour Force Participation and Employment Rates
-Towards a more flexible labour market
-Enhancing the stock of human capital
Chapter 5. The Economic Impact of Migration
-History and recent developments
-Migration policy
-Economic impact
-Conclusions