1.37 The Government remains committed to reducing the UK's deficit below the 3 per cent of GDP target set out in the Stability and Growth Pact (SGP). Given the level of global uncertainty, it is important to focus on the structural position.10 As set out in Table 1.2, the cyclically-adjusted Treaty deficit is forecast to be 2.9 per cent of GDP in 2014-15, with the UK forecast to meet the SGP target for the Treaty deficit in 2015-16.
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10 As highlighted in the European Commission's European Economic Forecast, autumn 2011.