The EU finance ministers gave the green light Monday to a rescue plan for Portugal, which provides 78 billion euros in joint loans with the IMF in exchange for austerity.
"The ministers agreed unanimously to grant financial assistance in response to the request of the Portuguese authorities," they announced in a joint statement issued at a meeting in Brussels.
The conditions of the assistance plan had been established at the beginning of the month: the country must receive the Europeans and the International Monetary Fund, amounting to two thirds / one third, 78 billion euros in loans over three years.
In exchange, he must take further austerity measures, restructure and strengthen the capital of its banks, to privatize and reform the health system in particular and the administration, with the goal of clean and replenish public finances.
According to the forecasts so far by the Portuguese government, the public deficit should thus be reduced by 5.9% this year to 3% of Gross Domestic Product (GDP) in 2013.
The program is "ambitious" but "preserves the most vulnerable groups of society," stressed the EU finance ministers on Monday.
He "will tackle the challenges with determination budgetary, financial and structural facing the Portuguese economy" and "will also help restore confidence and protect the financial stability of the euro area," they insist, calling on "all Political Parties (Portuguese) to ensure a rigorous application and fast program.
After resisting for several months of pressure from financial markets, Portugal in April became the third country in the euro area to seek external financial assistance.
Before him, he had to put up last year of rescue for Greece (110 billion) and Ireland (85 billion).
Green light finance ministers seemed acquired after the announcement last week from the support of Finland, hitherto uncertain.
The True Finns, a right wing nationalist who won 19% of the votes in the elections of April 17, had in fact repeatedly stated their opposition to assistance to Portugal.But they finally decided to join the government.
Finland is one of six countries in the euro area receiving the highest possible credit rating on its ability to repay its debts (AAA), making it a crucial partner for the bailouts in Europe.
The Joint Ministerial Statement also includes a condition imposed by the Helsinki agreement, namely that "the Portuguese authorities will seek to encourage private investors to maintain their exposure" in the country, "based on voluntary ".
Even before the implementation of internationally austerity measures taken so far by Lisbon to try to calm the markets, lower wages and increase in VAT in particular, have made the plunge into recession Portugal where he was released in late 2009 .
The Portuguese GDP shrank by 0.7% in the first quarter, having already fallen 0.6% the previous quarter, according to statistics released last week.
The Portuguese Minister of Finance had said in early May that the new measures related to international aid plan could lead to economic contraction of 2% in 2011 and 2012, an upturn is expected only in 2013.
