Among the member states subject to IMF programmes, Ireland has made the most progress towards economic recovery and is now, once again, able to borrow in the international financial markets at affordable interest rates. Neither the USA nor Japan has adopted a medium-term fiscal plan – that is, a plan for reducing the growing debt in the long term.
The weak economy pushes up unemployment in many countries. Total euro area unemployment now exceeds 11 per cent of the labour force. But there are wide variations, from 5 per cent and falling in Germany to 25 per cent and rising in Spain. Weak activity and anchored inflation expectations mean that underlying inflationary pressures are low in most member states.