Belgium-Luxembourg [1994/1995]

OECD's annual survey of Belgium and Luxembourg's economy. Chapter I briefly reviews the salient features of the current cycle before considering recent trends and prospects. Chapter II first discusses monetary policy and monetary conditions, it then surveys the authorities' efforts to pursue fiscal consolidation, and finally it presents a progress report on structural reforms, notably those which concern social security, the labor market, and international competitiveness. Chapter III deals with the reform of financial markets, which was accompanied by an overhaul of the instruments and conduct of monetary policy and, by enhancing credibility and reducing interest rates, contributed significantly to the hard-currency policy and fiscal consolidation. Chapter IV gives a summary of the main findings and presents policy conclusions.