Mr. John Flynn:

In terms of the demographic pressures and the pressures on funds for public investment, the Stability and Growth Pact rules are there and do not specifically make any exemptions for public investment. Those rules are designed to ensure the long-term sustainability of the public finances and as such sustain a country's ability to invest in public services. They do not dictate the level of public expenditure. That is a matter of choice for the countries. For example, the expenditure benchmark rule states that, in the absence of discretionary changes in taxation, spending should increase in line with the country’s trend potential to grow. In other words, spending plans should be consistent with available resources but the country makes its own choice.