Subsidy. The €78 billion granted by the EU and the IMF to allow Portugal to keep financing itself on the markets and honor its external debt are subject to a “memorandum of understanding” negotiated with the Portuguese authorities. In addition to fiscal reforms and cuts to State expenditure to get back to a 3% GDP deficit in 2013, the agreement provides for a series of measures aimed to reform the structure of the country’s economic and production system. For now, they are just guiding axes but the memorandum signed in Lisbon has a binding character. The IMF’s teams will closely monitor the implementation of the reforms.
al reforms and cuts to State expenditure to get back to a 3% GDP deficit in 2013, the agreement provides for a series of measures aimed to reform the structure of the country’s economic and production system. For now, they are just guiding axes but the memorandum signed in Lisbon has a binding character. The IMF’s teams will closely monitor the implementation of the reforms.
Labor market. The labor market is deemed to severe, with permanent contracts that are very protected, and a high propor
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