In the current situation it is therefore extremely important to keep a tight rein on government expenditure. It will be interesting to see when growth in public spending once again falls below 1.0 per cent. Since the millennium this has only been the case in 2003. Does the Council believe it will be in 2007, when growth of 0.7 per cent is anticipated?
The development in house prices also illustrates our forecast problems. Increases of 15 per cent are now expected in 2006. Six months ago, the forecast was 7.0 per cent. A continued rise in prices could have a negative impact so it is important that the government does not encourage this. The Dutch situation is mentioned.