BRUSSELS (MNI) – The European Commission on Tuesday welcomed the
commitment in Portugal’s new budget to meeting key fiscal targets tied
to financial aid from the EU and International Monetary Fund.
“The new budget shows Portugal’s determination to meet its
targets,” said a spokesman for the European Commission.
Recommitting to the targets “sends an important signal,” he said.
2011 has been a very difficult year for the Portuguese economy and
the situation has been made even worse by “unfortunate negative events”
including a larger-than-expected gap in the accounts of the region of
Madeira and cost associated with a bank rescue.
Although Portugal “remains on track,” the negative surprises this
year mean that the country will need to take even tougher measures in
2012 to compensate, the Commission spokesman said.
In an initial response to the budget, unveiled last night, the
Commission spokesman welcomed in particular “the emphasis put on scaling
down expenditure rather than raising revenue,” and a plan to lengthen
working hours and the number of working days per year.
Official from the EU, IMF and European Central Bank will go to
Lisbon in November to review Portugal’s adherence to the conditions of
its bailout aid.
Brussels bureau: +332495228374; pkoh@marketnews.com
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