Brussels, 12/03/2011 (Agence Europe) - European Council President Herman Van Rompuy, who was speaking after the euro area summit which ended on Saturday 12 March, said they welcomed the ambitious measures that the Portuguese government has announced.
The Portuguese authorities have announced additional austerity measures aimed at reaching the public deficit objective - 4.6% of GDP in 2011 and 3% of GDP in 2012 (see EUROPE 10334). Measures include a reduction in social and health spending, taxation of pensions above €1500, and reduced redundancy facilities and severance pay. In a joint declaration, the Commission and the ECB welcome the fact that Portugal recognises the need to recapitalise its banking sector on the basis of results from strict and imminent stress tests. Portugal's Prime Minister José Socrates reiterated after the euro area summit that his country did not need external financial aid, as the decisions taken during the summit were likely to restore market confidence. (M.B./transl.jl)