The European Commission disclosed this Wednesday their reports on each country. In the document concerning Portugal, the EC emphasized the "limited progress" in structural reforms.
The execution of structural fiscal reforms has shown a “limited progress”, the report disclosed this Wednesday by the European Commission (EC) states. The document mentions that although public debt is at 60% of GDP, it is now being placed in the appropriate downward direction. In addition, the EC states the “effective activation of long-term unemployed” has also shown “limited progress”.
"The large stocks of next foreign debt, both private and public, and the high proportion of non-performing loans were vulnerabilities in a context of falling, but still very high, unemployment and the low productivity.”
The Country Reports aim to analyse the specific economic situation of each member-state of the European Union and also the challenges each country faces, which must be considered in the Stability Programme the Portuguese Government will have to present in April. These reports are a part of the “European Semester”, the EU’s economic policies coordination.
The conclusions were presented this Wednesday morning by Pierre Moscovici, the commissioner for Economic Affairs, Valdis Dombrovskis, the Vice-President for the Euro, and Marianne Thyssen, the commissioner for Social Affairs. Last week, the Winter Economic Forecast was disclosed, in which the EC stated Portugal had failed in the deficit structural adjustment. Nonetheless, the EC is now more optimistic: they predict the country will be able to leave the Excessive Deficit Procedure.