Looking at the right-hand-side diagram on the slide, the exercise entails that interest payments are smoothed, as in option 1, instead of remaining as they are now (the baseline scenario). What does such an exercise imply for the path of debt and gross financing needs?
The baseline high surplus scenario assumes primary surpluses of 3.5 per cent of GDP until 2027 and a gradual decline to 2 per cent by 2037. The baseline low surplus assumes only three years of primary surpluses of 3.5 per cent of GDP and 2 per cent thereafter.