STABILITY PROGRAMMES

These are medium-term government plans and assumptions provided by euro area countries regarding the development of key economic variables with a view to the achievement of the medium-term objective of a budgetary position close to balance or in surplus as referred to in the Stability and Growth Pact. These programmes present measures for the consolidation of fiscal balances as well as the underlying economic scenarios. Stability programmes must be updated annually. They are examined by the European Commission and the Economic and Financial Committee (EFC). Their reports serve as the basis for an assessment by the ECOFIN Council, focusing in particular on whether the medium-term budgetary objective in the programme is in line with a budgetary position close to balance or in surplus, providing for an adequate safety margin to ensure that an excessive deficit is avoided. Countries that have not yet adopted the euro must submit annual convergence programmes, in accordance with the Stability and Growth Pact. See EFC