recent forecasts for this year and next year in the new spring estimates, according to a senior European official.
Lisbon declares that lowered last year, the fiscal deficit to 2.1% of GDP or lower – the lowest level in the history of the country as a republic and is below the target of 2.5% set by Brussels – from 4,4% in 2015. It is also for the first time below the threshold of 3% set by the EU for excessive deficits. In the context of the excessive deficit procedure, Brussels define strict deadlines and targets in order for countries to reduce their deficit.
The most recent forecast of the Commission is that the deficit will be 2,3%, but “in any case, Portugal has surpassed the target set by the (European) Council” in 2016, said today the vice-president of the european Commission Valdis Dombrovskis.
The european Commission expects the Portuguese deficit to reach 2% this year and 2.2% in 2018.
“If these trends are confirmed when we use the Eurostat data in April and the spring economic forecasts, it can be said that Portugal is heading towards the end of excessive deficit procedures,” said Dombrovskis to members on a visit to Lisbon.
While generally praised the efforts of fiscal consolidation and the economic recovery of the country, asked for further reforms in order to tackle weak growth and high debt.
“We expect ambitious national reforms in order to address the economic imbalances in Portugal,” he said, adding that member-states must address their structural problems, “while the European Central Bank buys time” for such adjustments through the programme of quantitative easing.
The ÎτομπÏόβκσις said that Portugal needs to make more efforts to reduce the public debt. “Public debt has stabilized at around 129-130%, which is very high. It is very important that public debt be put on a clear downward trajectory. The markets need to see that the debt is reduced,” he said.
Dombrovskis: The Lisbon can come out of the excessive deficit procedure in the spring
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