This chapter discusses fiscal policy and public sector reforms with a view to keeping public finances on a sustainable path. As simulations show that the costs of ageing can be financed almost entirely by rapid debt reduction, the High Finance Council recommends that a structural budget surplus of 0.3% of GDP be reached in 2007. The OECD estimates that in order to achieve this target, to which the government has formally committed itself in its latest update to the Stability and Growth...