FRANKFURT (MNI) – The Portuguese government will “do whatever is
necessary” to meet its commitments to cut the public deficit, and it is
“putting aside all issues of popularity,” Portugal’s Prime Minister Jose
Socrates told the International Herald Tribune
In an interview published in Friday’s edition of the paper,
Socrates accused financial markets of being “very unfair” to the
country, forcing it to take measures more quickly than would have been
preferred.
“If we didn’t have this crisis of sovereign debt in Europe, we
could have afforded to reduce much more slowly the deficit and that
would be much better for our economy,” Socrates said. “The effort that
is necessary is very high, and I would have preferred to do it in two or
three years, but unfortunately we must get rid of these market
suspicions.”
Socrates also rejected comparisons with Spain, as well as with
other debt-stricken states who have announced measures that will come
into effect sooner than Portugal’s.
“I felt during these last months that the markets were penalizing
us because we didn’t take measures like the Spanish, Greeks and Irish
took in salary cuts,” the Portuguese PM said. “But, if you ask me, that
is something that has to do very directly with the life of people, so
that is why I wanted to make sure there were no alternatives. But we are
putting aside all issues of popularity.”
Nevertheless, Socrates was confident that markets would notice his
government’s commitment.
Earlier this week, Portugal’s government announced a fresh set of
austerity measures, including a 5% cut in public sector wages and a VAT
increase. The Portuguese government aims to reduce its budget deficit to
7.3% of gross domestic product this year from 9.3% last year. It hopes
to reduce the deficit to 4.6% of GDP in 2011.
–Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
