Germany is expected to have a moderately expansionary fiscal stance in 2014 in terms of the cyclically adjusted primary balance.
Additional government spending (0.2 percent of GDP) will go to pensions, infrastructure, education, childcare, and other priorities. Lower debt servicing costs, however, will result in a higher cyclically adjusted overall balance.
In Austria, the projected large fiscal deterioration 1¼ percent of potential GDP) reflects largely one-off support to the banking sector.