Portugal Faces Difficult Choices to Comply With Aid Program

Portugal faces “increasingly difficult” policy choices as it approaches the halfway mark of its aid program and political opposition to austerity measures increases, the International Monetary Fund said.

“The Portuguese authorities have continued with their impressive policy effort to gradually reverse the large economic imbalances accumulated over the last two decades,” the IMF said in a staff report on the fifth review of the rescue program for Portugal. “Policy choices have to strike a balance between going ahead with the additional adjustment measures needed to lower debt and bring the public finances to a sustainable path, and avoiding undue strains on the economy and employment.”