In the area of fiscal developments, it is fair to recognise that the fiscal deficit for the region as a whole stands at its lowest level, in terms of GDP, since the beginning of transition. Nevertheless, this should be interpreted with caution, particularly in light of the very positive output developments that have been observed recently.
The more positive side of the economic cycle provides in fact a fitting opportunity to procede further with fiscal consolidation, as well as with the necessary reforms of the structure of fiscal expenditures and revenues. Developments in the external balances of the countries in the region provide a sobering reading.