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European Commission chief Jose Manuel Barroso, however, tried to explain that it is possible both the wolf to be satiated and the lamb to remain alive pointing out that short-term needs must be addressed, while in the same time this should not be for the sake of structural reforms. According to him, reforms aimed at improving competitiveness already deliver by correcting imbalances in the European economy, especially in programme countries. In that regard he, too, pointed out that Ireland was a brilliant example of that. Barroso recalled that only less than a year ago analysts predicted an implosion of the euro and today there is an improvement. Since the peak in 2009, budget deficits have been halved and they are expected to drop below the level of 3% as set in the Stability and Growth Pact by the end of the year. The interest rates many member states are paying have declined significantly and the current account imbalances are already being corrected, the European Commission chief reported.
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