Maintaining such a perspective will lead to a successful transition to budgetary positions close to balance or in surplus and to a smooth functioning of automatic stabilisers in all member countries. Let me therefore reiterate that the Member States concerned must honour the commitments made to achieve balanced budgets by 2003-4.
Moreover, governments are encouraged to push ahead with reforms relating to the size and structure of public expenditure and revenue, which will also create room for further tax cuts and absorb the fiscal costs of population ageing. This reform agenda, as well as the urgent structural reforms relating to product, labour and financial markets, will be addressed in the forthcoming Broad Economic Policy Guidelines.