Brussels, 12/11/2014 (Agence Europe) - On Wednesday 12 November, the European Commission paid a final tranche of €400 million in 15-year loans to Portugal under the European Financial Stability Mechanism (EFSM), in the framework of the Portuguese bailout plan which ended in June.
“The Commission continues to stand by the Portuguese people in these still difficult times and will support the country's ongoing efforts to build a more stable basis for economic growth and job creation for its citizens”, said the Commissioner for Economic and Financial Affairs, Pierre Moscovici.
There is a difference of opinion between the Commission and Portugal over the economic prospects of the country. In its autumn forecasts, the Commission predicted a Portuguese deficit of 4.9% and 3.3% of GDP in 2014 and 2015 respectively. Lisbon is sticking to its target of bringing the deficit down to 2.7% of GDP in 2015.
In total, the EFSM has paid out €24.3 billion to Portugal between May 2011 and November 2014. Portugal, which has now taken back financial autonomy, benefited from total aid of €78 billion over three years (€26 billion from the EFSM, the EFSF and the IMF). The Commission forecasts that Portuguese debt will peak this year at 127.7% of GDP. (MB)