EMU: COMMISSION ENDORSES ANOTHER SIX CONVERGENCE/STABILITY PROGRAMME UPDATES.

• Position: European Monetary Union

Low risk in Austria.

With a balanced budget and debt below 60% by 2008, in line with the Maastricht criteria, "Austria's strategy can be considered appropriate", according to Economic and Monetary Affairs Commissioner Joaquin Almunia. Also on the plus side: pension reforms should ensure that despite an ageing population Austria is at low risk with regard to the sustainability of its public finances.

Significant cut in debt ratio and Belgium.

The Commission applauds the Belgian authorities' further efforts in reducing the national debt (Belgium ranks third among the EU's most debt-ridden countries) by 2008. Given that the kingdom's debt ratio peaked at 140% of GDP in 1993, the reduction achieved by 2005 (91%) is already significant, with the ratio projected to fall below 80% of GDP by 2008. Regarding the sustainability of public finances in the context of an ageing population, the Commissioner feels Belgium is at medium risk. The Commission nevertheless recommends that Belgium implement further reforms to achieve a budget surplus by the end of the programming period and notably suggests it makes "less use of one-off measures" to achieve this end.

Luxembourg congratulated on very wise strategy.

The Grand Duchy's record is also "very positive", according to the Commissioner. With a debt ratio of 10% (significantly below the 60% reference value), Luxembourg has adopted a "very wise" strategy for reducing its government deficit by 2008 (-2.3% in 2005, -0.2% in 2008). Here, too, the sustainability of public finances is deemed to be at "medium" risk.

Estonia, Latvia and Slovenia inspire confidence.

The Commissioner indicates that the assessment of convergence programmes submitted by Estonia, Latvia and Slovenia suggests the future can be approached with some confidence. The debt ratio in Estonia (the lowest in the EU) is notably "an example of good budgetary policy". Whilst the situation in Latvia is also "comfortable" (the sustainability of public finances is deemed to be at low risk)...