In particular, it is of the utmost importance that those that have not already done so manage the transition to budgetary positions close to balance or in surplus in order to ensure the smooth and effective functioning of the Stability and Growth Pact in the future.
Let me strongly emphasise that all the Member States concerned must honour the commitments made to achieving balanced budgets by 2003-04. Moreover, governments should pursue ambitious reforms with regard to the size and structure of public expenditure and revenue, also in order to create room for further tax cuts and to absorb the fiscal costs of population ageing.