Press Release: Commission assesses convergence programmes of Denmark, Cyprus and Slovakia

Having examined their updated convergence programmes, the European Commission finds that Denmark and Cyprus have presented fiscal policy strategies in line with the Stability and Growth Pact. With a budget in surplus, already low and rapidly declining debt, and low risk with regard to the long-term sustainability of its public finances, Denmark is an example of good fiscal policy. Cyprus is also conducting a sound fiscal policy and is making good progress towards its medium-term objective, but is in need of further reform in the areas of pensions and health care to deal with a budgetary impact from ageing that is among the highest in the EU. Slovakia is on the way to correcting its excessive deficit by 2007, but the structural adjustment should be strengthened to ensure correction in 2007 by a larger margin and speed up the progress towards the medium-term objective.