Recommendation for a Council Decision abrogating Decision 2010/288/EU on the existence of an excessive deficit in Portugal

On 2 December 2009, the Council decided, by Decision 2010/288/EU, that an excessive deficit existed in Portugal. On the same date, the Council addressed a recommendation to Portugal with a view to bringing the excessive deficit situation to an end by 2013 at the latest. Following the 2011 request by the Portuguese authorities for financial assistance from the Union, the Council addressed two new recommendations to Portugal on 9 October 2012 and 21 June 2013, which extended the deadline for correcting the excessive deficit to 2014 and 2015, respectively.

On 12 July 2016, the Commission decided that Portugal had not taken effective action in response to the Recommendation of 21 June 2013. On 8 August 2016, the Council adopted a decision giving notice to Portugal to take measures for the deficit reduction judged necessary in order to remedy the situation of excessive deficit, thereby setting a new deadline for correction by 2016. On 16 November 2016, the Commission concluded that Portugal had taken effective action in compliance with the Council Decision of 8 August.

As part of the excessive deficit procedure, Member States are required to notify data on government deficits and debt and other associated variables twice a year, namely before 1 April and before 1 October. The Council should take a decision to abrogate a decision on the existence of an excessive deficit on the basis of the notified data.

In the view of the Council, following the April 2017 notification by Portugal, the 2017 Stability Programme and the Commission 2017 spring forecast, the excessive deficit in Portugal has been corrected and Decision 2010/288/EU should therefore be abrogated.