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Consumer-price inflation in the EU is projected to remain relatively high in 2012 (2.7%), inter alia due to the impact of fiscal measures, but is expected to abate gradually over the forecast horizon, averaging 2.0% and 1.8% in 2013 and 2014 respectively (see Graph I.2). Pronounced cross-country divergences will remain a defining feature of the outlook. They span across a number of dimensions – including financing conditions, the labour market situation and the need for, and advancement of, private and public-debt deleveraging. Current-account adjustment is forecast to continue, especially in Member States with large pre-crisis deficits. This adjustment is. | I Most Free 2nd Quartile 3rd Quartile I Least Free FRASER INSTITUTE Economic Freedom ofthe World 2012 Annual Report James Gwartney Robert Lawson Joshua Hall with Scott L. Baier Christian Bjornskov Matthew Clance Alice M. Crisp Axel Dreher Gerald P. Dwyer Nicolai J. Foss and Kai Gehring Economic Freedom ofthe World 2012 Annual Report James Gwartney Robert Lawson Joshua Hall Florida State University Southern Methodist University Beloit College with Scott L. Baier Clemson University Christian Bj0rnskov Aarhus University Matthew Clance Clemson University Alice M. Crisp Florida State University Axel Dreher Heidelberg University Gerald P Dwyer University of Carlos III Nicolai J. Foss Copenhagen Business School Norwegian School of Economics Business Administration Kai Gehring University of Gottingen .
