Mr. Sebastian Barnes:

Those statements are not inconsistent. We acknowledged in our report that a great deal of progress has been made on fiscal consolidation and we expect the economy to accelerate. These are all good things, as is the projection that the public finances will improve over the next two years. The point we are making in the report is that the public finances will now improve by less than would have been the case had the initial amount of consolidation been adhered to. We are trying to present an objective analysis. The situation is indeed improving and we hope the report accurately reflects our acceptance of that view. At the same time, however, as a result of the budget decision, the risks have increased. To clarify, we have assessed that the Government is pursuing an appropriate policy. We are not saying it is a reckless policy but simply that, in our view, the risks have increased and are greater than they would have been had this decision not been taken.