Euro-zone

Portugal adopted from austerity

The Parliament in Lisbon has the controversial budget of the Linksregierung in the first reading approved. The conservative parties, until the autumn, ruled, warned of serious differences with the EU.

Prime Minister Costa (r.) promises his fellow countrymen, the time of strict austerity is over

For the Portuguese draft budget 2016 voted the deputies of the Socialist party (PS) of Prime Minister António Costa, as well as the different left allies of the PS. The household, which is a departure from the strict austerity policy in the previous Euro-crisis country provides, should be at 16. March, be finally adopted.

A “better life” possible

The Budget shows “that a better life in Portugal is possible,” said Costa in the parliamentary debate. For the Opposition, criticized the former Prime Minister Pedro Passos Coelho, the budget was a “poisoned gift”. The country will be more vulnerable to crises.

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Costa disagreed, the budget was in line, despite all the international commitments of Portugal. The socialists want cuts in income back, and the payroll tax cut. Taxes on gasoline and tobacco should however increase. Finance Minister Mário Centeno insured, a reduction of salaries and pensions to be excluded in any case. The net borrowing from 4.3 percent of gross domestic product (GDP) last year to 2.2 per cent of GDP in the current year to decline.

Since 2014 is back on its feet

Portugal was during the financial crisis in 2011 with a bailout package of 78 billion euros from the European Union and the International monetary Fund (IMF) before the bankruptcy was preserved. In return, undertook the government in Lisbon to a strict austerity and Reform path. After three years under the EU rescue package is the country since may 2014 financially back on their feet.

Costa had after his Amtsantritts the end of November, a departure from the strict austerity policy of his predecessor, Passos Coelho promised.

The German Finance Minister, Wolfgang Schäuble, recently warned the new Portuguese government. The country should in the financial markets do not continue the presumption of Stoke, “that the path wants to leave”, said Schäuble. This would be very dangerous for Portugal.

se/ww (afp, rtr, dpa)