Press Release: Commission adopts report on Portuguese budgetary situation; assesses updated stability programme

The European Commission on 22 June 2005 adopted a report on the Portuguese budgetary situation after the government recently announced that the deficit would reach 6.2% of GDP in 2005. Such deficit was neither close to the 3% reference value set in the European Union Treaty nor could it be considered temporary or exceptional, as defined by the Treaty. The debt-to-GDP ratio was also above the 60% reference value and on the increase. In parallel, the Commission also examined Portugal's updated stability programme which foresees a decrease of the deficit to 4.8% in 2006 and 2.8% in 2008.