Lisbon granted extra year to slash deficit: minister
AFPLISBON -- Heavily indebted Portugal has been granted an extra year to cut its public deficit, and will now have until 2015 to bring it below 3 percent of gross domestic product (GDP), Finance Minister Vitor Gaspar said on Friday.
March 16, 2013, 12:06 am TWN
“The new deficit limits are 5.5 percent of GDP in 2013, 4 percent in 2014, and 2.5 percent in 2015,” Gaspar told a press conference as he presented a quarterly review of reforms agreed to in exchange for aid from the European Union and the International Monetary Fund.
The targets had already been eased in September to 4.5 percent for this year, 2.5 percent in 2014 and 2 percent in 2015.
Eurozone countries are obliged to run public deficits of no more than 3 percent of output, and are supposed to work toward a balanced budget, and even a surplus in times of economic growth.