EN    EN EN 
 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 11.6.2008 
SEC(2008) 2013 final 
  
Recommendation for a 
COUNCIL OPINION 
 
On the updated stability progr amme of Belgium, 2007-2011 
(presented by the Commission) 
 
EN 2   EN EXPLANATORY MEMORANDUM  
1. G ENERAL BACKGROUND  
The Stability and Growth Pact is based on the objective of sound government finances as a 
means of strengthening the conditions for pric e stability and for strong sustainable growth 
conducive to employment creation. The 2005 reform  of the Pact acknowledged its usefulness 
in anchoring fiscal discipline but sought to  strengthen its effectiveness and economic 
underpinnings as well as to safeguard the sustaina bility of the public fi nances in the long run. 
Council Regulation (EC) No 1466/97 on the streng thening of the surveillance of budgetary 
positions and the surveillance and coordination of economic policies1, which is part of the 
Stability and Growth Pact, stipulates that each Member State has to submit, to the Council and the Commission, a stability or convergence pr ogramme and annual updates thereof. Member 
States that have already a dopted the single currency submit (updated) stability programmes 
and Member States that have not yet adopte d it submit (updated) convergence programmes. 
The first stability programme of Belgium was submitted in December 1998. In accordance 
with the Regulation, the Council delivered an opinion on it on 15 March 1999 on the basis of 
a recommendation from the Commission and after having consulted the Economic and 
Financial Committee. As regards updated st ability and convergence programmes, the 
regulation foresees that these are assessed by the Commission and examined by the 
Committee and if necessary and following the same procedure as set out above, the updated programmes may be examined by the Council. 
2. B
ACKGROUND FOR THE ASSESSMENT OF THE UPDATED PROGRAMME  
The Commission has examined the mo st recent update of  the stability  programme of Belgium, 
submitted on 21 April 2008, and is recommending a Council opinion on it (see box for the main points covered by the assessment). 
In order to set the scene against which th e budgetary strategy in the updated stability 
programme is assessed, the follo wing paragraphs summarise: 
(1) the most recent assessment of the country ’s position under the preventive arm of the 
Stability and Growth Pact (s ummary of the Council opinion  on the previous update of 
the stability programme); 
(2) the orientations for budgetary policies adopted by the April 2007 Eurogroup; 
(3) the May 2008 update of the country-specific broad economic policy guidelines in the 
area of budgetar y policies; 
(4) the Commission’s assessment of the October 2007 implementation report of the 
national reform programme. 
                                                
 
1 OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 
7.7.2005, p. 1). The documents referred to in this text are available at: 
 http://ec.europa.eu/economy_finance/about/activities/sgp/main_en.htm. 
 
EN 3   EN 2.1. The assessment in the Council op inion on the previous update 
In its opinion of 27 March 2007, the Council summarised its as sessment of the previous 
update of the stability  programme, covering the period 2006-2010, as follows. "The Council 
considers that the strategy of a continued reduction of the still high debt stock provides an 
example of fiscal policies conducted in co mpliance with the Pact. However, while the 
programme foresees a gradual build-up of su rpluses (notably thr ough reduced interest 
expenditure) starting from a balanced position in nominal terms, there are some risks to the 
achievement of the budgetary targets. Neverthele ss, the medium-term objective is expected to 
be reached within the programme period."  
In view of its assessment, the Council invited Belgium to "ensure that the budgetary target for 
2007 is met and strengthen the pace of adjust ment towards the MTO thereafter, including 
through a reduction of the recourse  to one-off measures" and "in th e light of the high level of 
debt and the projected increase  in age-related expenditure, to  better address the long-term 
sustainability of public finances by at least achieving the MTO as well as by implementing reforms." 
2.2. Orientations for budgetary policies ad opted by the Eurogroup in April 2007 
On 20 April 2007, with a view to improving the c oordination of fiscal policies in the euro 
area, Eurogroup ministers discussed nationa l budgetary developments in 2007 and the 
preliminary policy outlook for 2008 and thei r implications for the euro area. 
Reaffirming their adherence to the sound fiscal policy principles  of the revised Stability and 
Growth Pact and to national fiscal rules, Mi nisters committed to (i) build on the better-than-
expected budgetary outcomes in  2006 to pursue more ambitious  budgetary targets than those 
set in the end-2006 updates of the stability programmes; (ii)  implement their 2007 budgets as 
planned, avoiding expenditure overruns, and using unexpected extra revenues to reduce 
government deficit and debt; and (iii) carefully  design fiscal policy plans for 2008 so as to 
accelerate the adjustment towards the MTO for Me mber States which have not reached it and 
for those which have reached it to avoid feeding macroeconomic imbalances overall
2. 
2.3. May 2008 update of the country-specific broad economic policy guidelines in the 
area of budgetary policies 
On 14 May 2008, the Council adopted a recommendation on the 2008 update of the broad 
guidelines for the economic policies of the Me mber States and the Community and on the 
implementation of Member States' employment policies3. In the area of budgetary policies, 
Belgium was recommended to “str engthen fiscal consolidation” and was encouraged to focus 
on “fully implementing the strategy aiming to en sure the long term su stainability of public 
finances, including expenditure re straints, fiscal surpluses, a nd a persistent reduction of 
government debt”. In addition, all euro area Me mber States were recommended to “continue 
pursuing budgetary consolidation towards thei r medium-term objectives in line with the 
Stability and Growth Pact, hence striving to achiev e an annual structural adjustment of at least 
0.5 % of GDP as a benchmark” and “to improve the quality of public finances by reviewing 
                                                 
2 The entire statemen t can be found at: 
 www.gouvernement.lu/salle_presse/actualite/2007/04/20pm_krecke_berlin/MTBR_EG_conclusions-
finalCLEAN.rtf 
3 OJ L 139, 29.5.2008, p. 59. 
 
EN 4   EN public expenditures and taxation, and by modernis ing public administrati on, with the intention 
to enhance productivity and innovation, th ereby contributing to economic growth, 
employment and fiscal sustainability”. 
2.4. The Commission assessment of the Octo ber 2007 implementation report of the 
national reform programme  
On 11 December 2007, the Commission adopted its  Strategic Report on the renewed Lisbon 
strategy for growth and jobs, which incl udes an assessment of the October 2007 
implementation report of Belg ium’s national reform programme4 and is summarised as 
follows. 
Belgium’s national reform programme identifies as  key priorities in or der to create growth 
and jobs: the sustainability of public finances; the reduction of labour costs; the creation of a 
more dynamic labour market; the stimulati on of the economy through investment and 
reforms; strengthening the social security sy stem; and strengthening the synergies between 
environmental protection and growth. The Co mmission's assessment is that Belgium has 
made good progress in implementing its na tional reform programme over the 2005-2007 
period, despite some slowdown in the pace of reforms in 2007.  
Against the background of the strengths an d weaknesses identified and the evidence on 
progress made, the Commission recommended that Belgium was recommended to give 
highest priority to the challenges in the areas of the high tax-burden on labour, whilst 
strengthening fiscal cons olidation and improving labour market performance.  
In addition, Belgium should also focus on the areas of: long term sustainability of public 
finances; the competition in gas and electric ity markets; R&D and innovation performance; 
and the employment rate for older workers and vulnerable groups. 
Based on the Commission Strategic Re port, the Council adopted on 14 May 2008 
recommendations on the 2008 update of the broad guidelines for the economic policies of the 
Member States, including Belgium. 
                                                 
4 Communication from the Commission to the European Council, “Strategic report on the renewed 
Lisbon strategy for growth and jobs: launching the new cycle (2008-2010)” - COM(2007) 803, 
11.12.2007. 
 
EN 5   EN  
Box: Main points covered by the assessment  
As required by Article 5(1) (for stability programm es) and Article 9(1) (fo r convergence programmes) 
of Council Regulation (EC) No 1466/97, th e assessment covers the following points: 
• whether the economic assumptions on which the programme is based are plausible; 
• the medium-term budgetary objective (MTO) pres ented by the Member State and whether the 
adjustment path towards it is appropriate; 
• whether measures being taken and/or proposed to r espect that adjustment path are sufficient to 
achieve the MTO over the cycle; 
• when assessing the adjustment path towards the MTO, whether a higher adjustment effort is made 
in economic good times, whereas the effort may be  more limited in economic bad times, and, for 
euro-area and ERM II Member States, whether th e Member State pursues an annual improvement 
of the cyclically-adjusted balance, net of one-off and other temporary measures, of 0.5% of GDP as 
a benchmark to meet its MTO; 
• when defining the adjustment path  to the MTO (for Member States that have not yet reached it) or 
allowing a temporary deviation from the MTO (for Member States that have), the implementation 
of major structural reforms which have direct l ong-term cost-saving effects (including by raising 
potential growth) and therefore a verifiable imp act on the long-term sustainability of public 
finances (subject to the condition that an appropriat e safety margin with respect to the 3% of GDP 
reference value is preserved and that the budgeta ry position is expected to return to the MTO 
within the programme period), with special atte ntion for pension reforms introducing a multi-pillar 
system that includes a mandatory, fully-funded pillar; 
• whether the economic policies of the Member Stat e are consistent with the broad economic policy 
guidelines. 
The plausibility of the programme’s macroeconom ic assumptions is assessed by reference to the 
Commission services’ spring 2008 forecast, using al so the commonly agreed  methodology for the 
estimation of potential output and cyclically-adjusted balances. 
The assessment also examines: 
• the evolution of the debt ratio and the outlook for the long-term sustainability of the public 
finances, which should be given “sufficient atten tion in the surveillance of budgetary positions” 
according to the Council report of 20 March 2005 on “Improving the implementation of the 
Stability and Growth Pact”. A Commission Co mmunication of 12 October 2006 sets out the 
approach to the assessment of long-term sustainability5; 
• the degree of consistency with th e national reform programme, subm itted by Member States in the 
context of the Lisbon strategy for growth and j obs, and its October 2007 im plementation report. In 
its cover note of 7 June 2005 to the European Council on the broad economic policy guidelines for 
the period 2005-2008, the ECOFIN Council stated that the national reform programmes should be 
consistent with the stabilit y and convergence programmes;  
• compliance with the code of conduct6, which inter alia prescribes a common structure and set of 
data tables for the stability and convergence programmes.  
                                                 
5 Communication from the Commission to the Council and the European Parliament, “The long-term 
sustainability of public finances in the EU” - CO M(2006) 574, 12.10.2006 - and European Commission, 
Directorate-General fo r Economic and Financial Affairs (2006), “The long-term sustainability of public 
finances in the European Union”, European Economy No 4/2006. 
6 “Specifications on the implementation of the Stability and Growth Pact and guidelines on the format 
and content of stability and convergence programmes”, endorsed by the ECOFIN Council of 11 
October 2005. 
 
EN 6   EN  
Recommendation for a 
COUNCIL OPINION 
 
On the updated stability programme of Belgium,  2007-2011 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty esta blishing the European Community, 
Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of 
the surveillance of budgetary pos itions and the surveillance and coordination of economic 
policies7, and in particular Article 5(3) thereof, 
Having regard to the recommendation of the Commission, After consulting the Economic  and Financial Committee, 
HAS DELIVERED THIS OPINION: (1) On [8 July 2008] the Council examined the updated stability progr amme of Belgium, 
which covers the period 2007 to 2011
8. 
(2) Over the last 10 years, real  GDP has grown by some 2¼% on average, slightly above 
the average growth rate in the euro area. This relatively high GDP growth led to a 
decline in the unemployment rate, while th e employment rate (especially of the 
younger and older workers) and the hours work ed remain low, reflecting high labour 
taxation and labour market rigidities, low j ob search requirements and a low effective 
retirement age. The budget has been hove ring around a balanced  position since 2000 
(except in 2005), and the debt ratio, which had falle n from 134% of GDP in 1993 to 
108% of GDP in 2000, continued its impressi ve decline and is now below 85% of 
GDP. Increasing the employment rate, toge ther with ambitious budgetary positions, 
would contribute to the long-term su stainability of public finances. 
(3) The macroeconomic scenario underlying the programme projects real GDP growth to 
fall from 2.8% in 2007 to 1.9% in 2008 a nd stabilise around 2% in the following 
                                                 
7 OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 
7.7.2005, p. 1). The documents referred to in this text can be found at the following website: 
 http://ec.europa.eu/economy_finance/about/activities/sgp/main_en.htm. 
8 The update was submitted once a government with full powers had been installed, thus well beyond the 
1 December deadline set in the code of conduct . 
 
EN 7   EN years. Assessed against currently available information9, the scenario for 2008 and 
2009 appears to be based on  favourable growth assumptions  given the deteriorated 
external environment and hi gher inflation since the pr ojections included in the 
programme were finalised. Growth assump tions for 2010-2011 are broadly plausible. 
The programme update expects in flation to rise to 3.0% in  2008, and to slow down to 
1¾% over the period 2009-2011. The programme's inflation projections for 2008-2009 appear to be on the low side in view of the marked rise in commodity and processed 
food prices in recent months. Furthermore,  the employment growth projections of 
around 1% per annum  in the programme update appear to be relatively high in view of 
below-potential GDP growth throughout  the programme period. While the 
programme's wage growth projections are on the low side for 2008, they appear high 
for the following years (3¼ - 3½ %), especially compared to the projected low inflation rate. 
(4) For 2007, the general government deficit was 0.2 % of GDP, against a surplus target of 
0.3% of GDP set in the previous update of the stability programme. The worse outturn 
in 2007 was due to higher expenditure grow th than planned which was only partly 
offset by a small positive base effect from a better-than-expected outcome in 2006 and 
a positive revenue growth surprise. Higher-than-planned expenditure reflected, in 
particular, a strong increase in subsidies pa id to companies under the service voucher 
scheme and a lower-than-expected impact of  one-off measures. The revenue surprise 
resulted chiefly from higher-than-expected social contributions and occurred in spite 
of the non-implementation of a number of planned revenue-increasing one-offs. The 
budgetary implementation in 2007 was thus not fully in line with the invitation in the 
Council opinion of 27 March 2007 on the prev ious update of the stability programme
10 
and with the April 2007 Eurogroup orientations for budgetary policies, since unexpected extra revenue was used for higher-than-budgeted expenditure. 
(5) The main goal of the medium -term budgetary strategy in th e programme is to ensure a 
continuous reduction of the still high debt ratio of close to 85%  of GDP in 2007 to 
around 71% of GDP in 2011 through a gra dual build-up of headline budgetary 
surpluses to 1% of GDP in 2011, star ting from a balanced budget in 2008. The 
primary surplus, which has been decreasi ng since 2001 (from 7.0% to 3.7% of GDP in 
2007) in parallel to the progres s in debt reduction, is projec ted to increase to 4.4% of 
GDP by 2011. As a result of the worse-th an-expected outturn in 2007, the budgetary 
targets (both in nominal and structural te rms) are below the ones in the previous 
update throughout the programme period. The structural balance, calculated according to the commonly agreed methodology, is expected  to improve from a deficit of ¼% of 
GDP in 2007 to a surplus of almost 1½% of GDP in 2011. Compared to what was envisaged in the previous update of the st ability programme, the achievement of the 
medium-term objective (MTO) - a surplus of 0. 5% of GDP in structural terms (i.e. in 
cyclically-adjusted terms net of one-off and other temporary measures) - is delayed by 
one year to 2009. The adjustment takes place on both the expenditure and revenue side. The planned expenditure reduction of  0.7 percentage point of GDP in nominal 
terms is attributable chiefly to a fall in interest expenditure which results from the projected decline in the debt  ratio. The revenue increase amounts to 0.5% of GDP and 
                                                
 
9 The assessment takes notably into account the Co mmission services' spring 2008 forecast and the 
Commission assessment of the October 2007 implementation report of the national reform programme. 
10 OJ C 89, 24.4.2007, p. 2. 
 
EN 8   EN follows from the expected growth of tax base s. In contrast to th e previous update, the 
programme explicitly foresees no furthe r recourse to one-off measures after 2008. 
(6) The budgetary outcomes could be worse than projected in the programme. First, the 
macroeconomic environment could be worse than projected in the programme update, 
especially in 2008 and 2009. In particular , the favourable assumptions regarding 
employment, wage and consumption growth ma y have led to an overestimation of tax 
revenue. In addition, the expect ed overall tax elas ticity seems on the high side in 2008. 
Regarding primary expenditure, the programme  does not include measures that seem 
necessary to achieve the pla nned adjustment in a context of rising ageing-related costs 
and relatively strong projected wage incr eases. Moreover, excluding the reduction in 
interest expenditure, the co mposition of the adjustment is geared strongly to the 
revenue side, possibly reducing the sustainabi lity of the adjustment. Finally, whilst the 
budget remained broadly in balance over the last years, the achievement of the aimed-for budget surpluses was postponed. In spite  of the good macroeconomic conditions in 
2007, the budgetary target was not reached in the absence of a government with full 
powers following the federal elections in June. In 2008, further measures seem 
necessary to achieve the target. In view of the risks to the macro-economic outlook 
and the budgetary targets mentioned above, the development of the debt ratio is likely 
to be somewhat less favourable than proj ected in the programme, although the debt 
remains on a firm downward path. 
(7) In view of this risk assessment, the budge tary stance in the programme may not be 
sufficient to ensure that the MTO is ach ieved by 2009, as envisaged in the programme. 
However, a sufficient safety margin against breaching the 3% of GDP deficit threshold 
with normal cyclical fluctuations will be provided throughout th e programme period. 
The pace of adjustment towards the MTO implied by the programme should be strengthened in 2008 by implementing additional structural budgetary measures in the context of the planned budget c ontrol exercise in order to en sure that the objective of a 
balanced budget is met. In 2009, it should be backed up by measures, in particular on 
the expenditure side, to be in line with  the 0.5 % of GDP benchmark improvement 
specified in the Stability and Growth P act and to reach the MTO as planned. The 
Council also notes that the budgetary plans for 2008 are not fully consistent with the 
April 2007 Eurogroup orientations for budgetary  policies. Although the debt ratio may 
decrease less than projected in the program me, it seems to be sufficiently diminishing 
towards the reference valu e over the programme period. 
(8) Belgium appears to be at medium risk w ith regard to the sustainability of public 
finances. The long-term budgetary impact of ageing is above the EU-27 average, influenced notably by a relatively high incr ease in pension expenditure as a share of 
GDP over the coming decades. The effective retirement age in Belgium is one of the lowest in the EU, and raising it is the aim of the Generation Pact which brought a 
number of changes to the pension system. A lthough this represents a step in the right 
direction, national projections show th at this reform w ould not reduce the 
sustainability gaps. The budgetary position in 2007 as estimated in the programme, 
though slightly worse than the starting position of the previous programme, contributes to offsetting the projected long-term budgetary impact of population 
ageing but is not sufficient to fully offset future spending pressures. Maintaining high 
primary surpluses over the medium term, bringing the debt ratio below the Treaty reference value and implementing further meas ures aimed at addressing the substantial 
 
EN 9   EN increase in age-related expenditure woul d contribute to reducing risks to the 
sustainability of public finances. 
(9) The stability programme seems to be consiste nt to some extent with the October 2007 
implementation report of the national reform  programme. In particular, both reports 
consider the sustainability of public finan ces in light of population ageing as a key 
challenge for the Belgium economy. The stability programme however does not 
contain a qualitative assessment of th e overall impact of the October 2007 
implementation report of th e national reform programme within the medium-term 
fiscal strategy nor systematic information on the direct budgetary costs or savings of 
the main reforms envisaged in the nationa l reform programme. On the other hand, the 
budgetary projections of the programme seem  to take into account the public finance 
implications of the actions already implem ented on the basis of the national reform 
programme. 
(10) The budgetary strategy in the programme is  broadly consistent with the country-
specific broad economic policy guidelines in cluded in the integrated guidelines and 
the guidelines for euro area Memb er States in the area of budgetary policie s issued in 
the context of the Lisbon strategy. 
(11) As regards the data requirements specified  in the code of conduct for stability and 
convergence programmes, the programme has so me gaps in the required and optional 
data11. 
The overall conclusion is that, af ter an impressive reduction in  the debt ratio since 1993 to 
85% in 2007, the programme envisages a con tinued and rapid reduction through a gradual 
build-up of headline surpluse s following the budgetary dete rioration in 2007. The budgetary 
consolidation mainly builds upon a reduction in interest expenditu re and an increase in tax 
revenue, while efforts on primary expenditure  remain small. There are risks to the 
achievement of the budgetary targets particular ly in view of the relatively favourable 
underlying macroeconomic assumptions and the fact that the programme does not specify 
measures which seem required to meet the ta rgets. The adjustment to the MTO in 2008 does 
not appear to be sufficient and it seems unlikely that the MTO will be met in 2009, as 
planned, in the absence of additional measures. 
In view of the above assessment and also in the light of the April 2007 Eurogroup orientations 
for fiscal policies Belgium is invited to: 
(i) ensure that the objectiv e of a balanced budget is met in 2008 and the MTO is 
obtained in 2009 by carrying out the benchmark adjustment in structural terms of 
0.5% of GDP, including through the impl ementation of additional structural 
measures, in particular on the expenditure side; 
(ii) in the light of the still high level of debt and the projected increase in age-related 
expenditure, continue addressi ng the long-term sustainabili ty of public finances by 
achieving high structural primary surpluse s as well as by implementing reforms to 
increase the employment rate and potentia l growth and to reduce the budgetary cost 
of ageing. 
                                                 
11 In particular, the data on the s ectoral balances are not provided. 
 
EN 10   EN Comparison of key macroeconomic and budgetary projections 
    2006 2007 2008 2009 2010 2011 
SP Apr 2008 2.8 2.7 1.9 2.0 2.0 2.0 
COM Apr 2008 2.8 2.7 1.7 1.5 n.a. n.a. Real GDP 
(% change) SP Dec 2006 2.7 2.2 2.1 2.2 2.2 n.a. 
SP Apr 2008 2.3 1.8 3.0 1.7 1.8 1.8 
COM Apr 2008 2.3 1.8 3.6 2.3 n.a. n.a. HICP inflation 
(%) SP Dec 2006 2.4 1.9 1.8 1.8 1.9 n.a. 
SP Apr 2008 0.1 0.3 -0.1 -0.4 -0.5 -0.8 
COM Apr 20082 0.1 0.3 -0.3 -1.0 n.a. n.a. Output gap1 
(% of potential GDP) SP Dec 2006 -0.3 -0.4 -0.4 -0.4 -0.3 n.a. 
SP Apr 2008 n.a. n.a. n.a. n.a. n.a. n.a. 
COM Apr 2008 3.4 3.2 2.6 2.4 n.a. n.a. Net lending/borrowing vis-à-
vis the rest of the world 
(% of GDP) SP Dec 2006 2.0 2.0 2.2 2.4 2.7 n.a. 
SP Apr 2008 0.3 -0.2 0.0 0.3 0.7 1.0 
COM Apr 2008 0.3 -0.2 -0.4 -0.6 n.a. n.a. General government balance 
(% of GDP) SP Dec 2006 0.0 0.3 0.5 0.7 0.9 n.a. 
SP Apr 2008 4.3 3.7 3.7 3.8 4.1 4.3 
COM Apr 2008 4.3 3.7 3.3 2.9 n.a. n.a. Primary balance 
(% of GDP) SP Dec 2006 4.1 4.2 4.1 4.1 4.2 n.a. 
SP Apr 2008 0.3 -0.4 0.0 0.5 1.0 1.4 
COM Apr 2008 0.3 -0.3 -0.2 -0.1 n.a. n.a. Cyclically-adjusted balance1 
(% of GDP) SP Dec 2006 0.2 0.5 0.7 0.9 1.1 n.a. 
SP Apr 2008 -0.4 -0.3 0.0 0.5 1.0 1.4 
COM Apr 2008 -0.6 -0.3 -0.2 -0.1 n.a. n.a. Structural balance3 
(% of GDP) SP Dec 20064 -0.4 0.1 n.a. n.a. n.a. n.a. 
SP Apr 2008 88.2 84.9 81.5 78.1 74.7 71.1 
COM Apr 2008 88.2 84.9 81.9 79.9 n.a. n.a. Government gross debt 
(% of GDP) 
SP Dec 2006 87.7 83.9 80.4 76.6 72.6 n.a. 
Notes : 
1 Output gaps and cyclically-adjusted ba lances from the programmes as recalculated by Commission services on the basis 
of the information in the programmes. 
2 Based on estimated potential growth  of 2.5%, 2.5%, 2.2% and 2.2% respectively in the period 2006-2009. 
3 Cyclically-adjusted balance excluding one-off and other temporary measures. According to the most recent programme, 
one-off and other temporary measures are de ficit-reducing for 0.7% of GDP in 2006 and deficit-increasing for 0.1% of GDP 
in 2007. According to the Commission services' spring forecast, one-off and other temporary m easures are deficit-reducing 
for 0.9% of GDP in 2006 and deficit-increasing for 0.1% in 2007. 
4 The December 2006 update of the stability programme did not provide information on the us e of one-off measures in 
the years 2008 to 2010. 
                
Source : 
Stability programme (SP); Commission services’ spri ng 2008 economic forecasts (COM); Commission services’ 
calculations