Macro-economic report.

Abstract

Member States' actions in 2011-2012 will be critical in averting a "lost-decade scenario". Policy priorities, timing and content will have to be set according to national circumstances and reflect inter alia the risks to fiscal sustainability and the need to correct excessive imbalances. The most urgent task is to break the vicious circle at work in some Member States of unsustainable debt, financial market disruption and low economic growth. While the draft National Reform Programmes submitted in November acknowledge the urgency of addressing the macro-economic challenges in an integrated way, they often fall short of proposing adequate policy responses.