LISBON, June 16 (Xinhua) -- Portugal's Minister of Finance Mario Centeno on Friday welcomed the European Council's (EC) decision to formalize the end of Portugal's excessive deficit procedure.
"Portugal has worked hard to achieve this outcome, and will continue to deliver on its commitments and to improve its prospects," an official statement by the Ministry of Finance reads.
Centeno added that the decision, which was recommended by the European Commission, was a "turning point" that reflected the country's excessive fiscal deficits have been corrected in a sustainable and durable way.
"Exiting the excessive deficit procedure is a very important milestone for Portugal as it demonstrates that Portugal's policy strategy has placed the public accounts on a sustainable path, keeping expenditure under control, while at the same time being supportive of inclusive growth," he added.
Centeno stated the decision came amid "a growth rebound which is now above EU average" and a steep reduction in unemployment and a fixing of the banking sector's problems.
"This decision also reflects structural changes in the Portuguese economy, which is now generating sustained current account surpluses," he pointed out.
Portugal exiting the excessive deficit procedure will be a turnaround for a country that in 2011 had to sign a 78 billion euros (87.3 billion U.S. dollars) bailout program with international lenders when it was on the verge of bankruptcy.
Portugal has been under an excessive deficit procedure since 2009, when its budget deficit was at around 10 percent of GDP.
Rating agency Moody's recently said the European Commission's recommendation for Portugal to exit the excessive deficit procedure "acknowledges Portugal's better-than-expected fiscal performance in 2016, when the budget deficit fell to 2.2 percent from 4.4 percent in 2015."
Moody's also said it shared the EC's expectations that deficits will remain below the 3 percent threshold in 2017 and 2018.
Portuguese Prime Minister Antonio Costa recently said the decision was a "vote of confidence in the Portuguese economy and in Portugal's ability to have turned a page in the framework of financial difficulties."
