Staff from the Commission, in liaison with staff from the European Central Bank, visited Lisbon from 14-19 June for the tenth post-programme surveillance (PPS) mission to Portugal. Staff from the European Stability Mechanism (ESM) also participated in the mission in the context of its Early Warning System. The mission discussed key challenges facing the Portuguese economy in the context of decelerating, but still robust economic growth, in particular high debt levels, external risks and the deteriorating current account. Discussions also addressed the fiscal situation and outlook, including the risks to structural consolidation as outlined in the Commission assessment of the Portuguese Stability Programme. As regards structural reforms, the mission focused on challenges emanating from weak productivity growth, labour market policies, housing, judicial reforms, energy and competition. Noting improved asset quality, bank profitability and capital adequacy, financial sector discussions focused on remaining vulnerabilities. A key topic was the implementation of the strategy for further reducing the declining, but still high stock of non-performing loans. The PPS report presenting the detailed findings of this mission will be published in October 2019.