Country Report Portugal 2015 Including an In-Depth Review on the prevention and correction of macroeconomic imbalances
Between May 2011 and June 2014, Portugal benefited from financial assistance in support of an economic adjustment programme which also covered the surveillance of imbalances and monitoring of corrective measures.
Portugal is still affected by very high private and government debt, vulnerability of the financial sector due to weak bank profitability and an ongoing deterioration of asset quality, limited access of corporations to credit, high levels of unemployment and bottlenecks in network industries, services, regulated professions and public administration. These weaknesses constitute risks for economic growth and financial stability, thus requiring decisive policy actions.
This Country Report assesses Portugals economy against the background of the Commissions Annual Growth Survey, which recommends three main pillars for the EUs economic and social policy in 2015: investment, structural reforms, and fiscal responsibility. In line with the Investment Plan for Europe, it also explores ways to maximize the impact of public resources and unlock private investment. Finally, it assesses Portugal in the light of the findings of the 2015 Alert Mechanism Report, in which the Commission found it useful to further examine the existence of macroeconomic imbalances or their unwinding. To this end, this Country Report also provides an in-depth review (IDR) of Portugals economy in line with the scope of the surveillance under the Macroeconomic Imbalances Procedure.