Newsletter April 2018

Legal Updates

Transposition of the GDPR

The Council of Ministers approved on March 22 the draft law number 120/XIII, which transposes the General Data Protection Regulation (GDPR). While the GDPR will officially enter into force on May 25 of this year, the Minister of Presidency and Administrative Modernization expects the law to be approved before that date.

Currently, according to statistical data presented by Microsoft, only 2.5% of Portuguese companies are prepared to implement the changes imposed by the GDPR. The Minister of Presidency and Administrative Modernization points out that the Portuguese system is already functional and the adoption of the RGDP will be carried out with the aim of causing the least possible disturbances, in a way adapted to the Portuguese business reality.

It should be noted that in the transposition of the RGDP the Portuguese Government has decided to exclude public entities from the fines foreseen in the regulation for a period of three years so that they can adapt to the new reality more effectively


Unconstitutional insolvency recognition

Judgment no. 55/2018 of the Constitutional Court, dated January 31, 2018, considers the rule of article 17-G, number 4 of the Insolvency and Corporate Recovery Code unconstitutional, in the sense that, requested the insolvency of the debtor by the Provisional Judicial Administrator, when the deadline for challenging the provisional list of credits is exceeded or if it is not possible to reach an agreement, in an Extrajudicial Recovery Process, the request of the Provisional Receiver entreating the insolvency of the debtor implies recognition by the latter of their insolvency and the waiver of their hearing.

This interpretation constitutes a required and decided insolvency proceeding outside the debtor’s intervention insofar as it does not deprive any possibility of the debtor bringing to court the facts and reasons that could lead to a different conclusion regarding his insolvency situation, configuring an unjustifiable restriction on the fundamental right of access to the courts or effective judicial protection enshrined in Article 20 of the Constitution of the Portuguese Republic.


Business Updates

Portugal without excessive imbalances

Portugal is out of the list of countries with “excessive macroeconomic imbalances”, a decision resulted from the European Commission’s assessment of the 12 European Union countries with economic imbalances, that began in November of 2017.

Explaining the reasons which led to this conclusion, Commissioner Pierre Moscovici highlights the growth trend of the Portuguese economy, the fact that unemployment is currently below the European average and, above all, the exclusion of Portugal from the Excessive Deficit Procedure.

The European Commission is focus to ensure that Portugal maintains a sustainable correction of its economic imbalances, expressing its interest in closely following the Stability Program and the national reform plan that the Government will have to present in April in Brussels


Portugal with safer medicines market

The Statute of Medication was amended, the legal regime for medicinal products for human use in Portugal. The national rules already comply with the Community requirements on safety and labelling devices, among other aspects of packaging of medicinal products. These measures aim to ensure greater control over the authenticity of medicines in Portugal, making it difficult to introduce counterfeit medicines into legal supply chains.

Portugal therefore complies with the deadline for the transposition of Directive (EU) 2017/1572. These specifications also ensure compliance with the guidelines for good manufacturing practice and inspection methods set out in Community regulations.