According to the Commission, in the absence of reform measures and budgetary consolidation, a considerable “sustainability gap” of about 3.5% of GDP, i.e., a gap between the structural budgetary position in 2005 and a sustainable fiscal position, emerges in both the EU and the euro area.
Though it analyses the issues in the context of the major financial markets it takes an emerging markets perspective on many of the issues and where there is a differential impact for emerging markets, tries to evaluate the different impact of the implementation of some of these measures on emerging markets.