Brussels, 21/10/2015 (Agence Europe) - The European Commission has called upon Portugal, which has not yet submitted its draft budget for 2016, to comply with the rules of the Stability and Growth Pact.
“We are sending a letter to the Portuguese authorities telling them to respect the rules and submit the draft budget”, said the Commission of the Euro, Valdis Dombrovskis.
In early October, the centre-right coalition - formed by the Social Democrat Party (PSD) of the outgoing Prime Minister, Pedro Passos Coelho, and its ally, the People's Party (CDS-PP) - won the general elections, but failed to hold onto an absolute majority. This situation has made the formation of a government in Portugal considerably more complicated (see EUROPE 11403).
“We understand the political difficulties. The established practice is that in election years, member states may delay a decision on budget adoption for the following year until the new government is in place and draft budgetary plans are submitted under no policy change plans. That is the case for Portugal”, Dombrovskis explained.
On Thursday 5 November, the Commission will present its analysis of the draft national budgets for 2016, which the member states are supposed to have submitted to it by 15 October. An extraordinary Eurogroup meeting will be held on Monday 23 November to discuss the Commission's recommendations. (Original version in French by Mathieu Bion)