Fiscal and regulatory policy should focus on keeping inflation in check. The budget should prioritise spending items that alleviate bottlenecks in the economy, such as investment in human and physical capital, and refrain from fuelling consumption. Boosting competition in network industries, especially in the electricity and natural gas sectors, is becoming a matter of urgency as these sectors contribute disproportionately to inflation.

Population (000s), 2005	4 131
Area (000 sq km)	70
Currency	Euro
GDP (Billion USD), 2005	161.9
Life expectancy at birth (Women, Men), 2003	80.7, 75.8
Total labour force (000s), 2005	2 015
Government type	Republic

Indicators	% change unless otherwise indicated
	2006	2007	2008
GDP growth	5.1	5.1	4.5
Consumer price index	2.8	2.8	3.0
Unemployment rate (%)	4.4	4.4	4.4
General government financial balance (% GDP)	1.0	0.7	0.7
Current account balance (% GDP)	-1.7	-1.3	-0.4

Source: OECD©OECD Observer No. 258/259, December 2006