23 May, 2017
Portugal has become the first bailed-out eurozone country to receive a clean bill of health from the European Commission after its budget deficit fell to 2% of GDP previous year.
The European Commission on Monday recommended that the Economic and Financial Affairs Council close Portugal's excessive deficit procedure, pointing out that Portugal managed to reduce its deficit to 2 percent of gross domestic product (DGP) in 2016, below the 3 percent threshold in the Stability and Growth Pact.
"Confidence in the Portuguese economy is beginning to be reflected by global institutions".
Italy, with an accumulated debt of 133 percent of gross domestic product in 2016, was in major breach European Union rules which limit debt to 60 percent of GDP.
The government was "fully committed" to keep implementing ambitious reforms, the ministry said.
The decision by the commission comes six years after Portugal sought a bailout in 2011 during the euro zone debt crisis. It exited the bailout in 2014.
As a result, Portugal's debt premiums are still among the highest in Europe despite a recent fall that outperformed other issuers.
The European Commission, giving its opinions as part of its annual assessment of EU national budgets, also singled out Italy for running a worryingly high public debt.
Portugal is no longer in breach of the EU's budget rules, officials say, which cap a country's deficit at three percent of gdp.
