Brussels removes Portugal from the excessive macroeconomic imbalances categories
The European Commission disclosed this Wednesday the European Semester Winter Package. In the country report, the EC commands the improvements in Portugal's imbalances.
Portugal registered improvements in its excessive macroeconomic imbalances. The compliment was made by Brussels in the Country by Country Report disclosed this Wednesday in the European Semester Winter Package. In spite of continuing to need more efforts, Portugal is the right path: the country has left the list of countries with excessive macroeconomic imbalances.
In the press conference after the commissioners’ meeting, Pierre Moscovici, European Commissioner for Economic Affairs, assured that in Portugal “the trend is undoubtedly positive”, confirming that imbalances in the country are “no longer considered excessive”. Still concerning Portugal, Moscovici signaled that “the economic recovery strongly accelerated last year and unemployment is standing below the European average”. The Commissioner stated “progress in Portugal has been very significant”, something worth “highlighting and encouraging”.
However, Moscovici also stated there are still some difficulties in the financial sector, in labor productivity, in inequality, in the fragmentation of the labor market and in investment, that has “improved, but is still very weak”. The same is to say that “we cannot stand still while there is a lot left to be done”, he highlighted. Valdis Dmbrovskis shares this opinion: the vice-president of the European Commission revealed he will send a letter to the Portuguese authorities “highlighting the importance of implementing reforms” to solve the imbalances that are still existent.
"In Portugal, the trend is undoubtedly positive. ”
Portugal continues being included in the macroeconomic imbalances’ procedure, but is no longer a part of the excessive imbalances’ category. “Imbalances are decreasing in a more favorable financial conditions and macroeconomic context, but public and private debt and the negative net external position continue to be very high“, the Commission clarifies in the report about Portugal.
The Portuguese President, Marcelo Rebelo de Sousa, welcomed the acknowledgement from the European Commission of the positive evolution of the Portuguese economy, stating it is an important step for “reestablishing Portugal’s external credibility”.
