Statement by Vice-President Rehn on Portugal

I count on the commitment of the Portuguese authorities to continue to address the remaining challenges with determination and step up efforts where necessary. Boosting competitiveness and rebalancing the economy towards the tradable sector requires reforms in both labour and product markets. Reducing excessive rents in network industries – for instance electricity - and in the sheltered services sector will also bring down costs for consumers.

This is an ambitious, but realistic, programme.  The broad political support it enjoys remains a key asset for its success. I fully recognise that the inevitable economic adjustment and the ongoing reforms involves courage and sacrifices from the Portuguese people. At the same time, the programme pays particular attention to protecting the most vulnerable in society. Concerning the current economic forecast for Portugal, most of the adjustment is expected for 2011 and 2012, and the economy should start expanding again from next year.

The European Commission will continue to support Portugal in implementing the programme effectively, with the aim of bringing its economy back on the road to recovery. I am convinced that these efforts will be rewarded by the return of confidence in the Portuguese economy.

• memo 28/2/2011 - Statement of Vice-President Rehn on Portugal  
• memo 28/2/2011 - Statement by the EC, ECB, and IMF on the Third Review Mission to Portugal