The economy has been turning toward a moderate expansion amid the recovery in overseas economies. The annual real GDP growth rate in fiscal 2016 was 1.3 percent, higher than the potential growth rate, which is estimated to be in the range of 0.5-1.0 percent, and the output gap has clearly climbed into positive territory.
It also puts the report’s economic reasoning into practice. In Werner’s view, monetary integration had to be accompanied by a partial Europeanisation of fiscal policy. Such Europeanisation does not necessarily imply full harmonisation.