The European Commission has noted that Portugal’s insufficient debt reduction targets have left the nation's public finances at ‘high risk’ in the medium term.
This less-than-cheery assessment is set out in the "2018 Budgetary Sustainability Report" published today by the EC’s Directorate-General for Economic and Financial Affairs.
This riveting tome outlines the major short-term, medium-term and long-term challenges faced by all the Europe’s Member States, using as reference the latest macroeconomic forecasts from the EC executive.
For Portugal, there are no risks within the next year, which will cheer the government as a major part of its re-election campaign is expected to rely on a stout economic performance.
The only country that is at high risk in the next 12 months is Cyprus where the economic devastation suffered during the ‘austerity years’ has had enduring and debilitating consequences.
The report notes for Portugal that finances could be at risk as 'vulnerabilities remain,' such as rise in interest rates.
It is this fear of interest rate rises that has caused Brussels to mark Portugal down in the medium-term, noting the high risk elevated borrowing costs would bring to the exchequer.
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No one would be that stupid.