BRUSSELS (MNI) – Portugal’s budgetary situation is serious and the
country’s government should present a fiscal plan for next year soon, in
order to reassure financial markets that it is in control, European
Commission President Jose Manuel Barroso said on Wednesday.
“I would say that the situation in Portugal is serious and that
Portugal has to show responsibility,” Barroso, a former Portuguese prime
minister, told reporters at a press conference in Brussels.
When a E440 billion Eurozone backstop fund was announced in May
this year, Spain and Portugal — with debt and deficit levels of
pressing concern to the markets — agreed to additional fiscal steps.
The Portuguese government aims to reduce its budget deficit to 7.3% of
gross domestic product this year from 9.3% last year.
“These are targets which have been announced by the Portuguese
government; they were announced last May,” Barroso said, adding that it
is “essential” that the targets are met and the budget plan is
implemented.
“All this just needs to be done,” Barroso said.
“The financial markets think that the Portuguese government is
shilly-shallying because there are a lot of ups and downs, so I would
urge Portugal to come up with a budget for 2011 soon,” he said.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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