CONTEXT  5

RECENT ECONOMIC DEVELOPMENTS  5

OUTLOOK AND RISKS  10

POLICY DISCUSSIONS  12

A. Fiscal Policy: Shaping a Medium-Term Strategy to Address New Spending Priorities and Advance Consolidation  12

B. Macrostructural Policies: Turning Structural Transitions into Engines of Innovation and Growth  22

C. Financial Sector Policies: Adapting to a Complex Financial Landscape  30

D. Voluntary Assessment of Transnational Aspects of Corruption  34

STAFF APPRAISAL  34