9. Notes that, prior to the beginning of the EU-IMF assistance programme, the Portuguese economy had suffered from low GDP and productivity growth for a number of years, as well as large capital inflows, and that these patterns, combined with an acceleration of expenditure, particularly discretionary spending, consistently above GDP growth, and the impact of the global financial crisis, had resulted in a large fiscal deficit and high public and private debt levels together with contagion from the Greek crisis, driving up Portugal's refinancing costs in the capital markets to unsustainable levels and effectively cutting the public sector from access to those markets; stresses that in 2010, before financial assistance was sought in 7 April 2011, P ...[+++]ortugal's growth rate had declined to 1,9 % and its fiscal deficit had reached 9,8 % (2010), its debt level 94 % (2010) and its current account deficit 10,6 % of GDP, with the unemployment rate standing at 12 %; notes in this context that the overall macroeconomic fundamentals deteriorated very rapidly, from reasonably good levels in 2007 before the crisis – when Portugal's growth rate was 2,4 %, its fiscal deficit 3,1 %, its debt level 62,7 % and its current account deficit 10,2 % of GDP, with the unemployment rate standing at 8,1% – to a deep and unprecedented recession;

9. Notes that, prior to the beginning of the EU-IMF assistance programme, the Portuguese economy had suffered from low GDP and productivity growth for a number of years, as well as large capital inflows, and that these patterns, combined with an acceleration of expenditure, particularly discretionary spending, consistently above GDP growth, and the impact of the global financial crisis, had resulted in a large fiscal deficit and high public and private debt levels together with contagion from the Greek crisis, driving up Portugal's refinancing costs in the capital markets to unsustainable levels and effectively cutting the public sector from access to those markets; stresses that in 2010, before financial assistance was sought in 7 April 2011, P ...[+++]ortugal's growth rate had declined to 1.9 % and its fiscal deficit had reached 9.8 % (2010), its debt level 94 % (2010) and its current account deficit 10.6 % of GDP, with the unemployment rate standing at 12%; notes in this context that the overall macroeconomic fundamentals deteriorated very rapidly, from reasonably good levels in 2007 before the crisis - when Portugal's growth rate was 2.4 %, its fiscal deficit 3.1 %, its debt level 62.7 % and its current account deficit 10.2 % of GDP, with the unemployment rate standing at 8.1% - to a deep and unprecedented recession;

for Member States that have not yet reached their medium-term budgetary objective, annual expenditure growth does not exceed a rate below a reference medium-term rate of potential GDP growth, unless the excess is matched by discretionary revenue measures. The size of the shortfall of the growth rate of government expenditure compared to a reference medium-term rate of potential GDP growth is set in such a way as to ensure an appropriate adjustment towards the medium-term budgetary objective.

(b) for Member States that have not yet reached their medium-term budgetary objective, annual expenditure growth does not exceed a rate below a prudent medium-term rate of GDP growth, unless the excess is matched by discretionary revenue measures. The size of the shortfall of the growth rate of government expenditure compared to a prudent medium-term rate of GDP growth is set in such a way as to ensure an appropriate adjustment towards the medium-term budgetary objective;

(b) for Member States that have not yet reached their medium-term budgetary objective, annual expenditure growth does not exceed efficient and sustainable medium-term rate of GDP growth, unless the excess is matched by discretionary revenue measures. The size of the difference of the growth rate of government expenditure compared to an efficient and sustainable medium-term rate of GDP growth is set in such a way as to ensure an appropriate adjustment towards the medium-term budgetary objective;

D. whereas the European Union is experiencing the most protracted period of weak growth since the second world war, with three years of economic slowdown and stagnation or even recession in some larger Member States, whereas, by contrast with the average growth rate of the world of 3.7% of GDP, the European Union's growth rate has been just 0.8% and the Euro area growth rate only 0.4% of GDP in 2003,