The European Commission has backed the Portuguese government decision to continue with the adjustment plan further to the Constitutional Court ruling which declared unconstitutional the Portuguese budget for year 2013. The Commission stressed that not continuing with the adjustment plan could increase the difficulties in the Portuguese recovery process.

Following the decision of the Portuguese Constitutional Court declaring unconstitutional the measures proposed by the government within the country's budget for 2013, the Portuguese executive declared that it will reduce the State spending without raising taxes. The reduction in government spending will affect social security, health, education and public companies envelopes. These measures aim to compensate for the budget's elements declared unconstitutional by the Court.

Further to the decision of the Portuguese government, the European Commission has expressed its support for these measures as well as stressed that abandoning or renegotiating the Portuguese adjustment plan would jeopardize the outcome of the efforts already made by Portuguese citizens. This would particularly affect investors' confidence in the Portuguese economy and prolong the difficulties for adjustment.

For that reason the Commission has expressed its confidence that the Portuguese government would achieve to implement measures to achieve the fiscal target requested and supported by the Troika in the seventh program review. The Commission also highlighted that the implementation of the adjustment plan is the most effective way to restore sustainable economic growth and improve employment opportunities. In this scope, the Commission will continue to work with Portuguese institutions to alleviate the social consequences of the crisis.