# EUR-Lex - 52014PC0184 - EN

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# 52014PC0184

**Proposal for a COUNCIL IMPLEMENTING DECISION approving the update of the macroeconomic adjustment programme of Portugal /* COM/2014/0184 final - 2014/0102 (NLE) */**

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EXPLANATORY MEMORANDUM

Upon a request
by Portugal, the Council granted financial assistance to Portugal on 17 May
2011 (Council Implementing Decision 2011/344/EU) in support of a strong
economic reform programme aiming at restoring confidence, enabling the return
of the economy to sustainable growth, and safeguarding financial stability in
Portugal, the euro area and the EU.

In line with Article 3(10) of Decision
2011/344/EU, the Commission, together with the International Monetary Fund  (IMF)
and in liaison with the European Central Bank (ECB), has conducted the eleventh
review to assess the progress on the implementation of the agreed measures as
well as their effectiveness and economic and social impact.

Taking into account of intervened
information, by proposal [insert reference] the Commission has proposed to
amend Decision 2011/344/EU.

An additional decision is necessary
following the entry into force of the "two pack" (specifically, Regulation
(EU) No 472/2013) which also disciplines how policy conditionality underpinning
an economic adjustment programme is to be modified. Regulation (EU) No 472/2013
applies to existing macroeconomic adjustment programmes that are in place as of
its entry into force which, as a consequence, requires that adjustments follow
the Article 7(5) procedure.

2014/0102 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

approving the update of the macroeconomic
adjustment programme of Portugal

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union,

Having regard to Regulation (EU) No
472/2013 of the European Parliament and of the Council of 21 May 2013 on
the strengthening of economic and budgetary surveillance of Member States in
the euro area experiencing or threatened with serious difficulties with respect
to their financial stability[1],
and in particular Article 7(5) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       Regulation (EU) No
472/2013 applies to Member States that are, at the time of its entry into force, already in
receipt of financial assistance, including from the
European Financial Stabilisation Mechanism (EFSM) and/or the European Financial
Stability Facility (EFSF).

(2)       Regulation (EU) No 472/2013 sets rules for the approval of
macroeconomic adjustment programmes for Member States in receipt of such
financial assistance, which must be applied in conjunction with Regulation (EU)
No 407/2010[2] establishing the EFSM
when the Member State concerned receives assistance both from the EFSM and from
other sources.

(3)       Portugal has been granted
financial assistance both from the EFSM, by Implementing Decision 2011/344/EU[3]
and from the EFSF.

(4)       For reasons of
consistency, the update of the macroeconomic adjustment programme for Portugal
under Regulation (EU) No 472/2013
should be approved having reference to the relevant provisions of Implementing
Decision 2011/344/EU.

(5)       In line with Article 3(10)
of Implementing Decision 2011/344/EU, the Commission, together with the
International Monetary Fund and in liaison with the European Central Bank, has
conducted an eleventh review to assess the progress made by the Portuguese
authorities in implementing the agreed measures under the macroeconomic
adjustment programme, as well as their effectiveness and economic and social
impact. As a consequence of that review, some changes need to be made to the
existing macroeconomic adjustment programme.

(6)       Those changes are set out
in the relevant provisions of Implementing Decision 2011/344/EU as amended
by Council Implementing Decision 2014/[...]/EU
of [...][4],

HAS ADOPTED THIS DECISION:

Article 1

The measures laid down in Article 3(8) and
(9) of Implementing Decision 2011/344/EU to be taken by Portugal as part of its
macroeconomic adjustment programme are hereby approved.

Article 2

This Decision
shall take effect on the day of its notification.

Article 3

This Decision
is addressed to the Portuguese Republic.

Done at Brussels,

For
the Council

The
President

[1]               OJ L 140, 27.5.2013, p. 1.

[2]               Council Regulation (EU) No 407/2010 of 11 May 2010 establishing a European financial stabilisation
mechanism (OJ L 118,
12.5.2010, p. 1).

[3]               Council Implementing Decision
2011/344/EU of 17 May 2011 on granting Union financial assistance to
Portugal (OJ L 159,
17.6.2011, p. 88).

[4]               OJ: please insert the
number, the date and the OJ publication reference of the document.