# EUR-Lex - 52014PC0054 - EN

*|*

# 52014PC0054

**Proposal for a COUNCIL IMPLEMENTING DECISION approving the update of the macroeconomic adjustment programme of Portugal /* COM/2014/054 final - 2014/0027 (NLE) */**

			*

			*

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 tenth
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.

2014/0027 (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 macro-economic adjustment programmes for Member States in
receipt of such financial assistance, which need to be applied in conjunction with
the provisions of Council Regulation (EU) No 407/2010[2]
establishing the EFSM when the concerned Member State receives assistance both
from the EFSM and from other sources.

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

(4)       For
reasons of consistency, the approval of the update of the macroeconomic
adjustment programme for Portugal under Regulation (EU) No 472/2013 should be done by 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 the tenth
review to assess the progress made by the Portuguese authorities on the
implementation of 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 [insert reference] of [insert date/
insert reference],

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
is addressed to Portugal.

Article 3

This Decision
shall be published in the Official Journal of the European Union.

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
stabilization 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).