Press Release: Commission assesses stability programmes of Austria, Cyprus, Malta, Portugal and Slovenia

On 13 February, 2008, the European Commission examined the stability programmes of Austria, Cyprus, Malta, Portugal and Slovenia. In 2007 both Cyprus and Slovenia reached the medium-term objective (MTO) for their public finances: a balanced budget in Cyprus’s case and a deficit of 1% of GDP in structural terms in Slovenia’s. The two countries should also be able to maintain sound budgetary positions throughout their programme periods. Malta envisages continued progress towards its MTO of a balanced budget. While there is also some progress towards a balanced budget in Austria, the planned consolidation is slower and relatively back-loaded. Taking into account the risks to the budgetary projections of both countries, the achievement of their MTOs by 2010 might not be secured. The Portuguese programme is consistent with a correction of the excessive deficit by the deadline agreed by the Council. It aims at further fiscal consolidation over the medium term, achieving its MTO of a structural deficit of 0.5% of GDP by 2010. However, this will depend on the measures announced in the programme being effectively implemented, and may even require additional measures. With regard to the long-term sustainability of their public finances, Portugal and Malta are at medium risk, while Cyprus and Slovenia are at high risk. Only Austria is considered to be at low risk