Portugal’s delighted Prime Minister announced that today’s figures for deficit reduction demonstrates that the country is getting the better of austerity.
António Costa reported that Portugal had "the best first quarter results since 2008.”
"The results released by the National Institute of Statistics on the budget deficit for the first quarter demonstrates the effectiveness of this alternative way that seeks to turn the page on austerity, fulfilling goals under the European rules," said Costa.
"We had in the first quarter the best result since 2008, a reduction of €900 million over the same period last year and this means that we must continue this strategy," said the PM.
Unplanned expenditure still to come in this year's finances include the Caixa Geral bailout which mysteriously has risen from €4 billion to €5 billion.
The Ministry of Finance also welcomed the deficit of 3.2% of GDP in the first quarter, which it said reaffirmed “rigour in execution.”
The aim his year is to reduce the public deficit by €1.3 billion so the government already has achieved €939 million in the first three months of the year.
Finance Minister Mario Centeno’s team, "confirmed a rigorous budgetary execution" which helps to "overcome moments of uncertainty in the European Union, such as those resulting from the Brexit.”
"The Government reiterates confidence in the fiscal consolidation process, reinforced by figures from the National Statistics Institute (INE) now confirmed," said Centeno.
"In the first quarter 2016, the general government deficit in the national accounts was 3.2% of GDP. A figure that compares with a deficit of 5.5% published by the INE in the same period of 2015," reads the Finance Ministry’s statement today.
Comments
Today's news suggesting the CGD would be privatised or even closed. Not, with Brussels and the IMF watching, the Portuguese Government continuing to bail it out.