Speaking at a news conference after a meeting of EU finance minister in Luxembourg, Valdis Dombrovskis, who is also a vice-president of the commission, said that “relative to the partial suspension of structural funds and of investment for Spain and Portugal, which is currently being discussed also between the commission and the European Parliament, will depend to a great extent on the budget proposals of Spain and Portugal for the next year” and, specifically, "if those budgets are in line with the decisions of the Council for the correction of the excessive deficit."

Dombrovskis said it was too early to comment on Portugal's budget plans, given that member states “have until 15 October” to present the document, but insisted that what is expected was that member states present plans in line with decisions by EU member governments, meeting as the Council of Ministers, under euro-zone rules on deficits.

As for the process of partial suspension of funds that is still going on – after the commission in July decided on the suspension of fines it had recommended for the two countries as part of the excess deficit procedures - Peter Kazimir, the minister of finance of Slovakia, which is currently chairing Council meetings, stressed the importance of both countries showing that they were taking “effective action".

Portugal's government is scheduled to submit the document to Portugal's parliament on Friday.

It is expected to present the draft budget to the commission by 15 October, along with a report on the "effective action" that it is taking to ensure progress in reducing the deficit. Portugal's minister of finance, Mário Centeno, has said that the document will “reflect the budgetary execution of 2016”, and that the government views this as sufficient to satisfy the commission's requirements.