26.4.2014 Official Journal of the European Union L 12575 COUNCIL IMPLEMENTING DECISION of 23 April 2014 amending Implementing Decision 2011/344/EU on granting Union financial assistance to Portugal (2014/234[EV) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Regulation (EU) No 407/2010 of 11 May 2010 establishing a European financial stabilisation mechanism (%), and in particular Article 3(2) thereof, Having regard to the proposal from the European Commission, Whereas: (1) The Council granted financial assistance to Portugal, at the latter’s request, on 17 May 2011 by means of Imple- menting Decision 2011/344/EU (). That financial assistance was granted in support of a strong economic and financial reform programme (the ‘Programme’) which aims to restore confidence, enable the return of the economy to sustainable growth, and safeguard financial stability in Portugal, the euro area and the Union. (2)  For technical reasons of data availability, which are independent of the Portuguese authorities’ action, the twelfth and final review under the Programme cannot start before mid-April 2014. At the same time, the availability period of the financial assistance is to end on 18 May 2014. To allow for a full assessment of Programme compli- ance under the final review in due diligence, which is a condition for the release of the last instalment, a short technical extension by six weeks of the availability period of the financial assistance is a necessary formality. (3)  In line with Article 3(10) of Implementing Decision 2011/344/EU, the Commission, together with the Interna- tional Monetary Fund (IMF) and in liaison with the European Central Bank (ECB), conducted, between 20 February and 28 February 2014, the eleventh review of the Portuguese authorities” progress on the implementation of the agreed measures under the Programme. (4)  Real gross domestic product (GDP) in 2013 performed better than projected at the tenth Programme review and is now estimated to have declined by 1,4 % (up 0,2 percentage points). This is the result of robust positive growth in the fourth quarter of 2013 and statistical upward revisions for previous quarters. Short-run indicators point to a further strengthening of the economic recovery in the current year. On an annual basis, real GDP is estimated to move into positive territory in 2014 and to remain there in 2015, with growth of 1,2 % and 1,5 %, respectively. The labour market outlook has improved as well, but unemployment remains high, foreseen to decline to 15,7 % in 2014 and continue declining thereafter. Downside risks to the macroeconomic outlook remain, as the projected recovery crucially hinges on positive trade and financial market developments, which also depend on the broader European outlook. (5)  The general government deficit is estimated to have been reduced to around 4,5 % of GDP in ESA-95 terms in 2013 (excluding bank recapitalisations, about 4,9 % including them), i.e. about 1 % of GDP below the target of 5,5 % of GDP. The overperformance is explained mainly by better-than-expected State tax revenues (including the one-off tax and social security debt recovery scheme) and lower-than-expected expenditure at the central govern- ment level (e.g. in acquisition of goods and services and capital expenditure). By contrast, non-tax revenues have been underperforming. The overall fiscal effort, measured by the improvement in the structural balance, is esti- mated at 1 % of GDP. (6)  The stock of domestic arrears has declined by about EUR 1,2 billion (0,7 % of GDP) on the back of the different debt settlement programmes (for the health, local and regional sectors). Nevertheless, new arrears are still accu- mulating albeit at a reduced pace. () OJL118,12.5.2010,p. 1. (%) Council Implementing Decision 2011/344/EU of 17 May 2011 on granting Union financial assistance to Portugal (OJ L 159, 17.6.2011, p- 88).