Ongoing 'macro imbalances' prompt continued EU review of accounts

By TPN/Lusa, in News · 01-01-2020 14:00:00 · 1 Comments

Portugal is to remain subject to "in-depth analysis" by European Commission officials in 2020 due to continuing macroeconomic imbalances, along with 12 other European Union member states, including the euro area’s five largest economies, the commission announced

With the new team of commissioners now in place, led by Ursula Von der Leyen, the commission at a meeting in Strasbourg adopted the second part of the Autumn Package of the EU’s economic policy coordination semester – in November, the outgoing commission had limited itself to publishing opinions on draft budgets– including the Alert Mechanism Report (AMR), which identified 13 member states that should be subject to in-depth analysis next year for showing "macroeconomic imbalances".

In addition to Portugal, this list includes the five largest economies in the euro area – Germany, France, Italy, Spain and the Netherlands – as well as Bulgaria, Croatia, Cyprus, Greece, Ireland, Romania and Sweden.

The commission notes that all these member states have already been subject to an in-depth analysis in the previous annual cycle of macroeconomic imbalance procedures, which showed that they all had "imbalances" or "excessive imbalances". They are now to remain under review to determine whether these are being corrected.

In the case of Portugal, in addition to again citing its high public and private debt as a proportion of gross domestic product and the continued high level of non-performing loans against a backdrop of weak productivity growth, the report emphasises the country's "vulnerable external position", given that its net international investment position is "extremely negative" and the pace of adjustment has been "very slow".

Stressing that macroeconomic forecasts point to moderate economic growth in the EU and a continued increase in risk, the commission argues that member states should redouble their efforts to correct imbalances, to put their economies on a stronger footing to address long-term challenges.

"The commission will present the conclusions of these analyses in-depth in the country reports, which will be published as part of the European semester winter package" at the end of February, the executive said.

In the same exercise last winter, on 27 February, the commission kept Portugal in the group of member states that it identified as having "macroeconomic imbalances" – mainly due to the high levels of debt and non-performing loans – together with nine other countries, three of which were grouped as the most critical, with "excessive imbalances": Cyprus, Greece and Italy.

On 20 November, the previous commission, led by Jean-Claude Juncker, had only been able to publish its review of Portugal draft state budget for 2020, since the Socialist government that emerged from October’s legislative elections is only now presenting its actual budget proposal.


Comments:

Who is Commissioner Ursula Von der Leyen?
She is an unelected non-citizen of Portugal who is part of the elites who dictate to Portugal what and how to run Portugal's economy.
If the people of Portugal are good with that, keep electing socialists in Portugal and stay in the EU.
Otherwise, if Portugal wants to be free of these unelected EU non-Portuguese rulers, then it is time for a Portix.
Portix for Portugal!

By Marc J Moniz from USA on 01-01-2020 05:04
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