The European Commission has approved Ireland's budget for 2015, but warned that the country should use the better-than-expected economic recovery to accelerate the reduction of the debt to GDP ratio.

In its analysis of Ireland’s budget for next year published this morning, the Commission called for “more ambitious deficit targets for 2015 and 2016” in order to put the “very high government debt to GDP ratio on a downward path.”

As expected, the Commission endorsed the budgets of all euro zone countries, with the exception of Greece and Cyprus who were still in a bailout programme.

Ireland was in fact one of the best-performing countries - one of five member states including Germany, Luxembourg, the Netherlands and Slovakia, which were found to be fully compliant with the Stability and Growth Pact.

Four member states were found to be "broadly compliant", with seven countries, including France, Italy and Spain, found to be at "risk of non-compliance".

New rules introduced during the financial crisis mean that all euro zone countries must submit their national budgets for scrutiny to the EU’s executive arm by October 15th each year.

France and Italy, who have been in constant battle with Brussels over their adherence to stability and growth pact rules, have been warned that they face a second review in March.

Announcing the reviews this morning, EU Economics Commissioner Pierre Moscovici said the Commission would decide in early March whether any further steps were necessary.

“By then we will have a clearer picture of whether governments are delivering on their reform commitments,” adding that “everyone must play their part to strengthen economic recovery.”