21. To ask the Chancellor of the Exchequer what assessment he has made of the UK’s structural deficit in comparison to other EU economies; and if he will make a statement. (158879)

Cyclically-adjusted net borrowing in the UK has averaged 1.0 per pent. of GDP over the current economic cycle. Over the same period, the structural balance has averaged 1.9 per cent. in the euro area, 2.1 per cent. in France, 2.3 per cent. in Germany and 2.8 per cent. in Italy.

23. To ask the Chancellor of the Exchequer what assessment he has made of the reasons for the difference between the UK’s structural deficit and those of the other major EU economies. (158881)

Cyclically-adjusted net borrowing in the UK has averaged 1.0 per cent. of GDP over the current economic cycle. Over the same period, the structural balance has averaged 1.9 per cent. in the euro area, 2.1 per cent. in France, 2.3 per cent. in Germany and 2.8 per cent. in Italy.

With output close to or at trend throughout the projection period, the profile of cyclically-adjusted borrowing is very similar to that of headline PSNB. Cyclically-adjusted borrowing is slightly higher than the main aggregate in 2007-08 because the economy appears to be slightly above trend in this year.