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Portugal has become the

latest bailed-out eurozone

country to receive a clean

bill of health from the

European Commission

after its budget deficit fell

to 2% of GDP last year.

This brings it well below the EU limit of 3% and allows it to exit the Commission's excessive debt procedure.After its 2011 bailout, Portugal saw austerity policies under a centre-right government until elections in 2015. Since then, a Socialist-led coalition has reversed those austerity measures. EU economy commissioner Pierre Moscovici said the outcome was "extremely good news" for Portugal. The Portuguese finance ministry hailed the Commission's decision, calling it a "turning point". Under EU rules, member states are not supposed to run annual deficits greater than 3% of their total economic output. Portugal now complies with those rules, but some other member states are less fortunate.
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