Press Release: Commission assesses stability programmes of Germany, Luxembourg, the Netherlands and Finland

On 23 January, 2008, the European Commission examined the updated stability programmes[1] of Finland, Germany, Luxembourg and the Netherlands. All four have reached, maintained or exceeded the objective they have set themselves to have sound public finances. Luxembourg and the Netherlands have presented budgetary strategies that are in line with the sound principles established in the Stability and Growth Pact. In both countries, the trajectory seems sufficient to maintain, by a large margin, their medium-term objective (MTO) (see below). Germany has achieved a remarkable budgetary consolidation and reached its MTO of a balanced budget already in 2007 but will relapse into a small deficit in 2008, in structural terms, unless it maintains a firm control over expenditure. No specific recommendation is considered necessary for Finland, which expects to easily achieve and indeed exceed its MTO of a 2% surplus throughout the programme period. Finland is also at low risk with regard to the long-term sustainability of its public finances. Germany, Luxembourg and the Netherlands are at medium risk[2].