Ireland and Estonia have made the biggest budgetary adjustments to correct their public finances in the euro zone, according to a report by credit ratings agency Standard and Poor’s.

The study examined Ireland, Estonia, Greece, Portugal, Spain and Italy, and found that Ireland and Estonia adjusted their finances the most and “demonstrated greater flexibility in the face of external pressures”. The report said: “Estonia and Ireland are now operating current account surpluses and have seen a large restoration in wage competitiveness.”