Press Release: Commission calls on Member States to improve quality and sustainability of their public finances

On 21.12.00, in preparation for the Stockholm European Council, the Commission approved a Communication on the contribution of public finances to growth and employment. Accounting for between 40% and 50% of GDP in the Union, public finances play a key role in the realisation of the Lisbon strategic objectives. The Communication identifies four main challenges: the need to maintain strong fiscal discipline; the need to accelerate progress towards more employment friendly tax and benefit systems; the need to re-orient public expenditure to areas promoting a knowledge-driven economy; and the need to ensure healthy public finances over the long term and take account of the implications of ageing.