Post-programme surveillance report : Portugal, Spring 2015

This report presents the findings of the second post-programme surveillance (PPS) mission of Commission staff, in liaison with ECB staff, to Lisbon between 4 and 12 June 2015. Economic and financial conditions in Portugal have further improved since the conclusion of the first post-programme surveillance mission in autumn 2014. However, the economic recovery is still hampered by the remaining macroeconomic imbalances. While the authorities reiterated their commitment to budgetary consolidation, efforts to reduce the underlying structural budget deficit need to be strengthened. The structural reforms undertaken during the financial assistance programme are increasingly having an effect. Nevertheless, the reform agenda to further enhance medium-term growth prospects, job creation and competitiveness remains challenging.