in the original version of the MoU. Finally, in case 575/2014 (14 September 2014) (Special
Sustainability Contribution) the Court considered that the objective set forth in
recommendations adopted in the context of the excessive deficit procedure was binding
and declared that, although Article 4 (2) TUE obliges the EU to respect the supremacy of
Member States constitutions, the constitutional principles of equality, proportionality and
the protection of legitimate expectations stemmed from the rule of law and ‘belonged to an
European common legal heritage’ that also binds the EU, thereby ignoring possible conflicts that
could emerge from different balancing of those principles by national and European
courts.LXVII In the decisions that trumped austerity measures there is always an implicit
caveat that the national provisions that breached the Constitution were not included in the
MoU. In other words, they were a direct result of a political option of the Portuguese State
and, therefore, had to be reviewed according to the usual constitutional standards of
adjudication.LXVIII
In the decision on the State Budget for 2012 (5 July 2012) (Case 353/2012), the
Portuguese Constitutional Court was able to avoid addressing the constitutionality of
austerity measures that stemmed directly from bailout conditionality by declaring – against
all evidence – that the MoU, although binding, ‘did not foresee any suspension of the holiday and
Christmas monthly salary payments or of any other similar measure.’LXIX
A more coherent, though to a large extent still quixotic, approach would have been to
question the validity of the MoU by sending a preliminary reference to the Court of Justice
– it would have been the first in the history of the Portuguese Constitutional Court. LXX
Such a reference would immediately acquire enormous resonance and thus be politically
much harder to ignore.
6. Conclusion
The MoU specified bailout conditionality included in the Council implementing
decision that authorized EU financial assistance to Portugal. It also contained obligations
of the Portuguese State that stemmed from the excessive deficit procedure. Being EU law,
the MoU was not exempt from judicial review by the Court of Justice. The EU is a union
based on the rule of law in which all acts of its institutions are subject to review of their
compatibility with, in particular, the Treaties, general principles of law and fundamental
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