, are also under discussion.
85. This chapter seeks to analyze the macroeconomic effects of the planned reforms and additional reforms needed to restore fiscal sustainability . Using the two-country version of the IMF's Global Fiscal Model (GFM), calibrated to the Czech economy, it analyzes the impact of the reforms and the alternative proposals for addressing the long-run fiscal sustainabilitychallenges. Specifically, it will address four main questions:
How will the fiscal impact of the tax and social expenditure reform affect real activity?
What are the