The European Commission has issued a report on the sustainability of public finances in Member States. The report groups countries based on their medium- and long-term risk profiles.
To my surprise Bulgaria is in the lowest risk group together with Denmark, Estonia, Finland and Sweden. The countries whose public finances are most at risk in the medium term are Ireland, Greece, Latvia, Spain and the United Kingdom.
The report proposes a policy framework for improving the sustainability of public finances that includes:
- Deficit and debt reduction;
- Increasing employment rates;
- Reform of pension and healthcare systems.