EC places Portugal under surveillance for “economic imbalances”

Five European countries, including Portugal, have been placed under the “watchful eye” of Brussels due to their “macroeconomic imbalances”, the European Commission (EC) announced yesterday (February 25).

In the case of Portugal, it’s mostly due to the country’s levels of “debt and unemployment”.

“Portugal still presents serious risks in terms of high levels of internal and external debt and unemployment, despite its considerable progress during the implementation of its adjustment programme,” said EU Economic and Financial Affairs Commissioner Pierre Moscovici in a press conference.

He also revealed that France, Italy, Croatia and Bulgaria were the other countries that presented “excessive imbalances that demand strict political action and specific surveillance”.

Thus in the next few months, the EC is expected to present recommendations on how these five countries can reduce their imbalances.

Portugal had already been considered one of the 16 EU State-members that “may be affected by imbalances in need of policy action and for which further in-depth reviews should be undertaken” in the ‘Fourth Alert Mechanism Report on macroeconomic imbalances in EU Member States’ released on November 28, 2014.

By MICHAEL BRUXO [email protected]