Press Release: European Commission considers that an excessive government deficit exists in Portugal

The European Commission, in an opinion on the budgetary situation prepared under the obligations of Article 104.5 of the Treaty and adopted on 16 October 2002, concludes that an excessive deficit exists in Portugal. On the basis of Article 104.6, it recommends to the Council to adopt a similar decision. Finally, the Commission recommends to the Council to address a recommendation to Portugal, in the sense of Article 104.7. The Portuguese government should adopt and implement all necessary measures in order to ensure that the general government deficit is reduced to clearly below 3% of GDP in 2003 and that the government debt ratio is kept below 60% of the GDP reference value. Necessary measures have to be adopted at the latest by 5 March 2003.