The budgetary position in the euro area and the EU improved significantly in 2007 compared to the previous year.The headline deficit Vacuum Extension Pipe declined to 1.6 % of GDP in 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 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 Mini Wardrobe GDP in 2007).