In an interview to financial newspaper Jornal de Negócios, Peter Praet said that the ECB saw “improvements almost everywhere” and that Portugal would benefit “from the reforms it had made, from the falling price of oil and improved financial decisions”, but warned: “the great question is what we call reform fatigue: in recent months some reforms have been suspended”.
The ECB economist said it was essential to know if the public debt was sustainable and that it was important to assess whether the country “manages to increase its growth performance structurally”, adding that if growth was weaker “it would be more difficult”.
Asked about the forecast that growth in Portugal would be between 1.5 percent and 2 percent in real terms in the coming years, Peter Praet said the question was always the interest rate that is paid against the real growth rate, including the inflation factor.
“It is challenging, and that is why the reforms are essential”, he emphasised.