Press Release: Quality of public finances is key to improving sustainability, increasing economic growth and the smooth functioning of EMU

Raising the quality of public finances, in other words getting value for taxpayers' money, is key to improving the sustainability of public finances. It should also help raise the growth potential of the European Union by enabling resources to be freed to reduce debt, lower taxes and invest more, including in human capital. The Commission Communication accompanying the 2008 Public Finances Report identified a number of areas for action regarding the way governments formulate, implement, and assess their budgetary strategies as well as how the preventive arm of the Stability and Growth Pact can be more effective in supporting the achievement of sustainable finances while contributing to higher growth and employment and a better functioning Economic and Monetary Union. The proposals built on the 2005 SGP reform and the May 2008 Commission Communication on EMU@10.