Press Release: Commission assesses stability programmes of Finland, Ireland and Luxembourg

Having examined their updated stability programmes, the European Commission finds the present budgetary positions of Finland, Ireland and Luxembourg generally sound and their projections for the coming years in line with their respective medium-term objectives. The Commission needs not give any specific policy invitations for Finland, which plans for budgetary surpluses that, albeit declining slightly, are above its target of 2%, has a low public debt and is well provisioned for ageing costs. With a sustained surplus but some risks of pro-cyclical policies in 2007, the public finances of Ireland also provide a good example of fiscal policies in the medium term. Ireland is nevertheless invited to remain prudent in view of a possible slowdown in the housing sector. Luxembourg has not yet achieved its medium-term objective, but should do so this year. As Luxembourg and Ireland face a strong projected increase in age-related expenditure, they are also encouraged to to improve the long term sustainability of their public finances.