Having set out its analysis of Ireland's current economic situation and medium-term prospects, the OECD goes on to identify the key challenges which the economic situation now presents. First, it refers to the need to ensure that the public finances adjust to the slower growth environment so that their soundness is assured. This involves reconciling continuing large demands for public expenditure with smaller increases in tax revenues. While the report acknowledges the substantial improvement in public expenditure monitoring and control arrangements in recent years, it also recommends ongoing reform in this area.