Consolidation measures strengthen public finances

Abstract

The effects of the Government’s economic policy programme are assessed separately in this alternative scenario, as the programme is not included in the baseline forecast. The consolidation measures, if carried through, will markedly strengthen the public finances. On account of the measures, growth in the general government debt to GDP ratio will come to a halt in 2019. The effects on economic growth essentially depend on whether cost-competitiveness can also be improved. Despite the consolidation measures, the general government debt ratio resumes growth over the longer term.