Headlines from the annual report of the Bank of Portugal

• The strict implementation of the economic and financial programme is desirable and inevitable


• Economic activity accelerated temporarily in 2010 - partly influenced by non-sustainable factors on the domestic demand side - but the labour market conditions continued to deteriorate


• In 2010 a significant adjustment of the imbalances of the Portuguese economy was again postponed


• [I]nsufficient consolidation of public finances


• [I]nsufficient adjustment of the external deficit


• The Portuguese economy continued to be characterized by a significant number of structural fragilities


• The important challenge of achieving a deleveraging of the banking sector and hence of the non-financial private sector


• The economic and financial adjustment Programme represents a demanding but reasoned opportunity to lay the foundations of sustained economic growth in the medium term

Here's the link.