Paolo Gentiloni highlighted the fact that the Portuguese authorities have decided to “approve the State Budget before the elections”, anticipating no negative effects on investment.

Gentiloni, who was speaking at the press conference to present the autumn economic forecasts, also highlighted that there are only “some small differences in the estimates [from the European Commission] in relation to the projections of the Portuguese authorities”.

Brussels predicts GDP growth of 2.2% in 2023 and 1.3% in 2024 — below the 1.5% estimated by Fernando Medina.

“When it comes to public debt, we have some differences”, admits the person in charge. Brussels only sees a ratio below 100% of GDP in 2025: it projects a ratio of 103.4% in 2023, which drops to 100.3% in 2024 and 97.2% in 2025. However, the Minister of Finance, Fernando Medina, guaranteed on Monday in Parliament that the debt would even be below 103% this year, ensuring that the target of a ratio below 100% in 2024 would be met.

The European Commissioner nevertheless points out that he hopes he is wrong. “I like the target of staying below 100% that the Portuguese authorities had in their plans and that we also have in the estimate, but only in 2025″, he highlights.

Despite these “small differences”, the European Commissioner said he had taken note that, “despite the crisis in Portugal, the authorities decided to continue and approve the OE before the elections” scheduled for March 10th next year. “I don’t think this situation will impact investment in the country”, he concludes.