Greater and more systematic efforts are, however, necessary to reduce fiscal deficits, which on average were 5.3% of GDP in 2003, well above the reference value of 3%, and in some countries substantially higher.
This is essential both for the fulfilment of the fiscal convergence criteria required for euro adoption and for the achievement of budgetary positions which will allow the automatic stabilisers to work and provide some room for manoeuvre for fiscal policy after joining Monetary Union.