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Portugal takes control of economy after completing bailout program but tough policies remain

Portugal is emerging from the painful economic constraints imposed by a three-year bailout that saved the country from collapse, but EU officials are warning that tough controls must remain in place to create stable employment.

With the government taking over the reins of its finances once again, Portugal becomes the second eurozone country after Ireland to free itself from the austerity and oversight imposed by its European partners and the International Monetary Fund as part of the 78 billion-euro bailout.

But European Commission Vice President Siim Kallas in Brussels warned there was "no cause for complacency." He said it is essential to keep an "unwavering commitment to sound budgetary policies and growth-enhancing reforms."

The Cabinet is to officially take back control of the economy on Saturday in Lisbon.