Proposal for a COUNCIL IMPLEMENTING DECISION approving the update of the macroeconomic adjustment programme of Portugal
Date: 2013-06-10
Institutions: European Commission
Subjects: EU control, Euro Group (euro area), Portugal, budget deficit, coordination of EMU policies, economic recession, economic stabilisation, financial aid, public debt

EUROPEAN 
COMMISSION 

Brussels, 10.6.2013  
COM(2013) 421 final 

2013/0195 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

approving the update of the macroeconomic adjustment programme of Portugal 

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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  and 
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  seventh  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. 

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2013/0195 (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, and in particular Article 7(5) thereof,  

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

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

Regulation  (EU)  No  472/2013  sets  rules  for  the  approval  of  macro-economic 
adjustment  programme  for  Member  States  in  receipt  of  such  financial  assistance, 
which  need  to  be  articulated  with  the  provisions  of  Regulation  (EU)  No  407/2010 
establishing  the  EFSM  when  the  concerned  Member  State  receives  assistance  both 
from the EFSM and from other sources. 

Portugal has been granted financial assistance both from the EFSM by Implementing 
Decision 2011/344/EU on granting Union financial assistance to Portugal and from the 
EFSF. 

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. 

In  line  with  Article  3(10)  of  Decision  2011/344/EU,  the  Commission,  together  with 
the IMF and in liaison with the ECB, has conducted the seventh review to assess the 
progress  made by Portugal on the  implementation of  the  agreed measures as well as 
their effectiveness and economic and social impact. As a consequence of this review, 
somes  changes  need  to  be  made  to  the  existing  macro-economic  adjustment 
programme. 

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(6) 

These  changes  are  contained 
Implementing Decision 2011/344/EU, 

in  Decision  No  [insert  reference]  amending 

HAS ADOPTED THIS DECISION:  

The  measures  specified  in  Article  3(7)  to  (9)  of  Implementing  Decision  2011/344/EU  to  be 
taken by Portugal as part of its macroeconomic adjustment programme are hereby approved.  

Article 1 

This Decision is addressed to Portugal.  

Article 2 

Article 3 

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

Done at Brussels,  

For the Council 
The President 

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