Press Release: Commission recommends further steps under the excessive deficit procedure for Portugal

Following its report of 22 June and the opinion of the Economic and Financial Committee, the European Commission announced on 20 July 2005 that it considered that there was an excessive budget deficit in Portugal. The deficit was planned to reach 6.2% of GDP in 2005 and expected to remain well above the 3% Treaty reference value until 2007, according to the recent update of the Portuguese stability programme. The Commission recommended that this budgetary situation be corrected by the end of 2008 at the latest and through structural measures. Finance ministers were expected to endorse these recommendations at their first regular meeting after the summer break.

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