Brussels, 06/11/2013 (Agence Europe) - Portugal must not relax its efforts eight months before the end of its structural adjustment programme, said the president of the European Commission, José Manuel Barroso, after his meeting with the Portuguese prime minister, Pedro Passos Coelho, in Brussels on Wednesday 6 November.
Barroso said that favourable signs showed that Portugal was on the right path, like the easing of the recession and increased exports. Referring to the political situation (a cabinet reshuffle and strong public hostility to austerity policies), he said that rather than putting everything at risk, investors should be shown that Portugal can meet its obligations.
Passos Coelho admitted that the structural adjustment programme that was being implemented was very demanding, but the government planned to achieve its targets on time: “We want to complete the programme within the timetable without additional aid. We want to conclude the programme so that we can get back to the market”. Confident that complete return to the markets would take place, Barroso refused to discuss details. “It is premature to speculate on any further precautionary programme”, he said, noting that “Ireland is only now speaking” about the end of its programme due to close at the end of December 2013.
Asked about the role of the Portuguese constitutional court, which has ruled that some of the measures recommended by the troika are unconstitutional, Barroso said the Commission has never criticised the court. A report from the European Commission Representation in Lisbon has discussed the matter, however, and the danger that the court could influence implementation of the programme (see EUROPE 10947). Barroso said the measures ruled to be unconstitutional now “have to be replaced with other measures that may be more difficult and will maybe impact on growth”. The Portuguese court's decisions cannot be challenged, he said, but it has to be recognised that they may have “consequences”. (EL/transl.fl)