The Executive Vice-President of the European Commission, Valdis Dombrovskis, commended Portugal for its “outstanding economic performance” during a press conference following the presentation of the European Semester spring package. This latest assessment from Brussels has resulted in Portugal being removed from the economic vulnerability monitoring mechanism it had been under for more than a decade.
Stated Dombrovskis “First of all, congratulations to Portugal for the remarkable economic performance in addressing its imbalances,”. He further noted that the conclusion from the European Commission is that Portugal “no longer faces macroeconomic imbalances.” This marks a significant milestone for the country, reflecting its progress in achieving economic stability.
Dombrovskis attributed this positive development not only to various factors but also to Portugal’s strong fiscal performance. The country has been showcasing budget surpluses, a rarity among EU nations. Additionally, the commissioner highlighted the “rapid fall” in the public debt-to-GDP ratio. According to Brussels forecasts, this ratio is expected to decrease to 91.9% by 2025, indicating substantial fiscal improvement.
Despite these achievements, Dombrovskis urged Portugal to accelerate the implementation of the Recovery and Resilience Plan (RRP). He emphasized that this is an “important topic” for the Commission, aiming to address some of the delays that have been encountered. The RRP is crucial for maintaining the momentum of economic recovery and ensuring long-term resilience.
The European Commission’s assessment period spans from 2023 to May 2024, offering a comprehensive view of Portugal’s economic landscape. This period has witnessed significant advancements, underscoring the effectiveness of the country’s economic policies and reforms.
Overall, Portugal’s exit from the economic vulnerability monitoring mechanism and its strong fiscal indicators are promising signs for the country’s future economic prospects. The emphasis now shifts to sustaining this progress through continued implementation of strategic initiatives like the RRP.
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