Speaking at a news conference in Lisbon during a one-day visit to Portugal, following a meeting with the governor of the Bank of Portugal and before another with the prime minister, Moscovici hailed what he said was “the tremendous success story” that the European Commission sees in Portugal and in Europe as a whole.
Since his last visit, in February last year, “Portugal’s progress has been very impressive”, he said.
He forecast a public sector budget deficit this year of 1.8 percent of gross domestic product, which he said would grow at a rate “probably above 2.5 percent this year.”
In its Spring forecasts, the commission had upgraded its growth forecast for Portugal to 1.8 percent, as well as forecasting a deficit of 1.8 percent of GDP.
The challenges now, Moscovici said, are “to continue to reduce the deficit [and ] the structural deficit” - that is, excluding cyclical effects and one-off measures.
On the economic front, the priority should be “transforming this recovery into lasting growth”, Moscovici said, adding that he saw this as “possible”, given “the quantity and quality of exports, the return of investment and the explosion in tourism” but also the fact that, in his words, “the Eurozone is becoming stronger.”
Moscovici described himself as “optimistic” about and “impressed” by Portugal’s performance, saying that “the signs that the Portuguese economy is in a solid situation are very strong.”
However, he stressed the need for efforts to be continued, as well as action aimed at “resolving the problem of inequalities.”
The income distribution in Portugal is among the most unequal in the European Union.