As part of the Autumn package of the European Semester, released today, the European Commission announces that Portugal, along with 11 other eurozone member states, has a 2026 state budget described as “compliant.” Consequently, the country may “continue to implement, as planned, budgetary policies” in the forthcoming year. This follows last year’s assessment where Brussels deemed Lisbon’s budget for the current year non-compliant due to ongoing energy support related to the energy crisis.
Regarding the conclusions of the post-program oversight of macro-financial assistance, Brussels highlights that “Portugal’s repayment capacity is supported by comfortable liquidity reserves and an active debt management strategy.” The commission also notes the “positive growth” anticipated for the country in the coming years, despite “reduced deficits” and “high levels” of debt.
