The ongoing and planned tax reductions are welcome steps towards reducing distortions in the economy and producing positive supply-side effects. However, they should be fully offset by primary spending cuts to prevent a pro-cyclical loosening of fiscal policy. As regards the financial markets, the introduction of the euro has led to a unified money market throughout the euro area.
Moreover, if we use the absolute measure of poverty, i.e., the ability to purchase a basket of basic goods, the rate of poverty actually declined in 2005 as well as in 2006.  b)  The decline in unemployment since 2003 can be seen at all educational levels, including the lowest.