Portuguese Prime Minister Antonio Costa on Wednesday rejected claims that the country could need a second bailout, insisting his anti-austerity drive is boosting the economy.
"I have never felt restless, because I have always said it makes no sense to talk about any kind of second bailout," Costa told journalists during a visit to local school Passos Manuel, in Lisbon, to inaugurate the academic year.
His comments came after recent claims that the country risked a second bailout, with the country's former finance minister Maria Luis Albuquerque among other politicians expressing concerns regarding Costa's anti-austerity policies.
Portugal emerged from a 78-billion-euro (about 87 billion US dollars) bailout in May 2014 and its economic growth is still meagre, with government debt still at around 130 percent of GDP.
The country faced threats by the EU over the summer after it recorded a 4.4 percent deficit last year, well over its target.
But the Socialist government, which is backed by the Communist Party and Left Bloc, has insisted it will manage to bring its deficit to below the EU target this year.
"Portugal has seen a calm budget implementation. This year it will not only be below the target of 3 percent of the deficit, but also below the 2.7 percent forecast by the European Commission," Costa said on Wednesday. "And we are actually going to sit comfortably below 2.5 percent."
He added that these results come after the government reduced income tax surcharge and restored salaries and pensions throughout 2016.
The centre-right government was forced to resign in November by anti-austerity law makers after around four years of tax hikes and spending cuts.
On Tuesday Moody's rating agency said the probability of Portugal needing a second bailout was low, while revising growth prospects downwards, expecting GDP to grow between 1 percent and 1.5 percent in the next years.
Moody's said the Portugal's deficit would be below 3 percent, 2.7 percent in 2016 and in 2017.
[Xinhua/globaltimes.cn]
15/9/16
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Related:
"I have never felt restless, because I have always said it makes no sense to talk about any kind of second bailout," Costa told journalists during a visit to local school Passos Manuel, in Lisbon, to inaugurate the academic year.
His comments came after recent claims that the country risked a second bailout, with the country's former finance minister Maria Luis Albuquerque among other politicians expressing concerns regarding Costa's anti-austerity policies.
Portugal emerged from a 78-billion-euro (about 87 billion US dollars) bailout in May 2014 and its economic growth is still meagre, with government debt still at around 130 percent of GDP.
The country faced threats by the EU over the summer after it recorded a 4.4 percent deficit last year, well over its target.
But the Socialist government, which is backed by the Communist Party and Left Bloc, has insisted it will manage to bring its deficit to below the EU target this year.
"Portugal has seen a calm budget implementation. This year it will not only be below the target of 3 percent of the deficit, but also below the 2.7 percent forecast by the European Commission," Costa said on Wednesday. "And we are actually going to sit comfortably below 2.5 percent."
He added that these results come after the government reduced income tax surcharge and restored salaries and pensions throughout 2016.
The centre-right government was forced to resign in November by anti-austerity law makers after around four years of tax hikes and spending cuts.
On Tuesday Moody's rating agency said the probability of Portugal needing a second bailout was low, while revising growth prospects downwards, expecting GDP to grow between 1 percent and 1.5 percent in the next years.
Moody's said the Portugal's deficit would be below 3 percent, 2.7 percent in 2016 and in 2017.
[Xinhua/globaltimes.cn]
15/9/16
-
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Portugal's parliament approves restoration of 4 public holidays
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