Last year, Brussels had considered the Portuguese Government’s proposal as not fully compliant, as it still provided for energy support following the energy crisis.
The European Commission considers, this Tuesday, that the proposal for It is “in line” with European Union (EU) recommendations and highlighted the country’s efforts to reduce debt.
As part of the autumn package of the European Semester, published this Tuesday, the community executive announces that Portugal (and 11 other member states of the euro zone) have a “compliant” OE2026, meaning that the country can “continue to apply, as planned, budgetary policies” next year. This after, Last year, Brussels considered it not fully in line with the Lisbon budget for this year as it still provides support for energy following the energy crisis.
“In general, the Commission considers that Portugal’s draft budgetary plan fulfills the obligations in terms of budgetary policy set out in the Stability and Growth Pact, as the budgetary situation for 2026 is expected to be close to balance, thus contributing to a reduction in the ratio of public debt to GDP”, it is listed.
Regarding the conclusions of post-macrofinancial assistance program supervision, Brussels highlights that “Portugal’s repayment capacity is supported by comfortable liquidity reserves and for a active debt management strategy“, and highlights the “positive growth” expected for the country in the coming yearsdespite “small deficits” and “high levels” of debt.
The European Semester is an annual exercise in economic policy coordination.
