Brussels, 17/11/2010 (Agence Europe) - EU Economic and Monetary Affairs Commissioner Olli Rehn made it clear on Tuesday 16 November 2010 that the problems facing Portugal were “very different” from the Irish problems. Irish banks are suffering from the cost of rolling over Ireland's sovereign debt, but banks in Portugal are pretty resistant and in good health. Lisbon's challenge is budget consolidation and structural reforms. The chair of the Eurogroup, Jean-Claude Juncker, said that his Portuguese counterpart had never talked about requesting EU aid. Fernando Teixeira dos Santos said that Portugal's situation meant that money can be raised on the markets in the current conditions and the country was focussing all its efforts on one thing - continuing to roll over debt on the markets. Earlier in the week, Portugal's finance minister warned about the risk of the Irish travails impacting on his own country's financial situation.
In a statement, Eurogroup welcomed the announcement by the Portuguese government that it is accelerating structural reforms, that will focus on removing rigidity from the markets for goods and labour, including the setting of pay rates, in order to boost productivity. Portugal has pledged to cut its public deficit to 4.6% in 2011. (M.B./transl.fl)