Portugal continues with macroeconomic imbalances, but does not meet the European criteria in terms of public debt and debt, but the European standards are suspended. And the European Commission recommends that they remain suspended in 2023.

Maintaining the escape clause in 2023 will give “space for national fiscal policies” to react when necessary. This at a time when the scenario is uncertain, although Brussels maintains the growth projection for the block in 2022 and 2023. The shocks with the war in Ukraine and the long-term implications for the energy supply needs of the European Union lead a, according to the Vice President of the European Commission, Valdis Dombrovskis, to a cautious design of fiscal policies in 2023.

The Brussels proposal is, therefore, that the suspensive clause be maintained in 2023, to deactivate it in 2024. “This will guarantee space for national budgetary policies to react quickly, if and when necessary”, reinforced the commissioner, leaving , however, the note: “However, to be clear: the extension of the activation of this clause does not suspend the Stability and Growth Pact”.

Paolo Gentiloni, Commissioner for Economic Affairs, also stressed that the suspension does not mean opening the spending tap without criteria and in an unlimited way.

This is the proposal of the European Commission that has to be ratified by the Council.

According to the analysis in the framework of the European spring semester, the European Commission decided not to proceed with excessive deficit procedures to any country — Romania would be in the forefront. But he adds that from the analysis carried out, there are countries that do not meet the criteria of indebtedness and deficit. According to Brussels, the deficit credit is fulfilled by Bulgaria, Denmark and Sweden and the other countries do not. In the case of debt, there are 13 that have not been fulfilled. Portugal is among them, along with Belgium, Germany, Greece, Spain, France, Croatia, Italy, Cyprus, Hungary, Austria, Slovenia, and Finland.

On the other hand, Brussels keeps Portugal abreast of macroeconomic imbalances. Three Member States have excessive imbalances (Cyprus, Greece and Italy) and nine have imbalances (Croatia, France, Germany, Ireland, the Netherlands, Portugal, Romania, Spain and Sweden).

Brussels recommends a prudent fiscal policy to Portugal

“Given the level of the Portuguese public debt and the high challenges of sustainability in the medium term, when taking fiscal support measures, it is important to preserve a prudent fiscal policy to guarantee the sustainability of public finances in the medium term,” he highlights. the European Commission, in its analysis of Portugal.

The European Commission highlights the importance of having measures that promote investment for growth, specifically in terms of the “green” and digital transition. In addition to controlling spending,

The Commission recalls the importance of the composition of public finances and the quality of budgetary measures, in particular through investments that promote growth, in particular by supporting the green and digital transition. “Move decisively forward in reinforcing spending control, cost efficiency and proper budgeting —in particular, intensifying efforts in public spending planning and the implementation of measures that improve the financial sustainability of the National Health System and public enterprises—remains important in facilitating the redirection of resources towards new strategic political priorities”.

Brussels invites Portugal to “regularly review the use, effectiveness and adequacy of support measures, including those aimed at coping with the increase in energy, and be prepared to adapt them to changing circumstances”.