Press Release: Commission assesses Stability and Convergence Programmes of Italy, Luxembourg, Lithuania and Portugal

The European Commission examined the updated Stability and Convergence Programmes (SCPs) of Italy, Luxembourg, Lithuania and Portugal. The assessment took place against the background of the ongoing sharp economic downturn. Budgetary positions are projected to deteriorate markedly in 2009 in Italy, Luxembourg and Portugal. In the latter two countries, this also reflects significant economic stimulus packages adopted in line with the European Recovery Plan that called for timely, targeted and temporary fiscal measures in Member States with fiscal room for manoeuvre. Italy's recovery measures are budgetary neutral, which seems adequate in view of the country's very high debt ratio. In Lithuania, the planned restrictive fiscal stance over the whole programme period is an appropriate response to address the existing economic imbalances. However, budgetary outcomes in the programme are subject to significant downside risks.