Recommendation for a Council Decision giving notice to Portugal to take measures for the deficit reduction judged necessary in order to remedy the situation of excessive deficit

The Stability and Growth Pact is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation. The Stability and Growth Pact includes Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure, which was adopted in order to further the prompt correction of excessive general government deficits.

Portugal has been under the excessive deficit procedure since 2 December 2009. Due to unforeseen adverse economic circumstances, the Council adopted revised recommendations to correct the excessive deficit in two occassions after 2009; first in 2012 and then in 2013. Specifically, on 21 June 2013, following a recommendation from the Commission, the Council adopted a revised recommendation and set a 2015 deadline to correct the excessive deficit.

On 12 July 2016, the Council adopted a decision establishing that no effective action had been taken by Portugal in response to the 2013 Council Recommendation. This document proposes a new deadline for the correction of the excessive deficit and an adjustment path that could ensure a durable correction of the excessive deficit.

ESO: Background information: Stability and Growth Pact: fiscal proposals for Spain and Portugal http://www.europeansources.info/record/stability-and-growth-pact-fiscal-proposals-for-spain-and-portugal/

EUR-Lex: SWD(2016)264: Analysis by the Commission services of the budgetary situation in Portugal following the adoption of the Council Recommendation to Portugal on 21 June 2013 with a view to bringing an end to the situation of an excessive government deficit and the Council Decision of 12 July 2016 establishing that no effective action has been taken by Portugal in response to the Council Recommendation of 21 June 2013 http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2016:264:FIN

EUR-Lex: COM(2016)519: Recommendation for a Council Implementing Decision imposing a fine on Portugal for failure to take effective action to address an excessive deficit http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2016:519:FIN

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