This report by European Commission services assesses compliance with the terms and conditions of the Second Review under the Economic Adjustment Programme.

A joint Commission/ECB/IMF mission met with the Portuguese authorities in Lisbon from 07 November to 16 November 2011. The mission assessed compliance by Portugal with the terms and conditions of the second review under the economic adjustment programme and updated conditionality for the next reviews.
The objectives of the Programme are to restore sound public finances, improve competitiveness and to put Portugal’s economy back on the path of sustainable growth and job creation. This report provides an assessment of compliance and summarises the findings of the mission.

A reassessment of the financing envelope has shown that the Programme projections continue to be valid and that financing is sufficient to cater for the needs of the Portuguese government over the Programme period. The government’s Programme is supported by loans from the European Union amounting to EUR 52 billion and a EUR 26 billion Extended Fund Facility with the IMF.