The budgetary position in the euro area and the EU improved significantly in 2007 compared to the previous year.The headline deficit declined to 1.6 % of GDP in Cabochons 2006 and 1.1 % of GDP in 2007, down from 2.
5% of GDP in 2005.The structural budget deficit diminished from 2% of GDP in 2005 to 0.8% in 2007, reflecting a ETi 400 Parts restrictive fiscal policy in euro area.The fiscal policy became pro-cyclically because the economy of euro area is characterized by a slightly negative output-gap (estimated at 0.
2% of potential GDP in 2007).