Press Release: Commission assesses the stability and convergence programmes of Spain, Cyprus, Latvia, Lithuania, Slovenia and the United Kingdom

Having examined their respective updated multi-annual stability and convergence programmes, the European Commission concluded that Spain fully met the requirements of having a budget close to balance or at surplus as set in the Stability and Growth Pact, but should embrace pension reform more vigorously to address the costs of an ageing population. Outside the euro zone, Cyprus was on track to correct its excessive deficit by 2005 as recommended by the Council, whereas Latvia deserved praise for having lowered its deficit targets compared to the May 2004 programme. Lithuania was called upon to make further progress towards a budgetary position of close-to-balance and to allocate higher-than-budgeted revenues and unspent expenditure this end. Slovenia was also urged to seize every opportunity to accelerate the reduction of its deficit and to improve the long-term sustainability of its public finances. Finally, the Commission encouraged the UK to maintain its deficit below 3% of GDP in the current financial year and to aim for a close-to-balance position in the medium term. The Commission's recommendations on these six programmes as well as on the updated convergence programme of Hungary were to be on the agenda of the European Union Finance Ministers' meeting on 8 March 2005.