SUPPLEMENTS /

3. EURO AREA SPECIFIC CHALLENGES.

In 2003 the euro area recorded subdued growth for the third year in a row.

For a third consecutive year, economic performance disappointed. Average GDP growth declined gradually to a mere 0.4 per cent in 2003, the rate of unemployment increased by about half a percentage point to 8.9 per cent, while public finances deteriorated further. At the same time, inflation came down only sluggishly, fluctuating around 2 per cent in the course of 2003. However,...