Portugal’s public debt exceeds estimate for full year in September

11 November 2014

Portugal’s public debt in September exceeded the amount expected for the full year by almost 6 billion euros, the Technical Unit for Budgetary Support (UTAO) said Monday in Lisbon.

According to the independent parliamentary support unit, citing figures from the Bank of Portugal, in late September the public debt stood at 229.15 billion.

This figure represents an increase of 9.9 billion euros against the end of 2013 and “is 5.9 billion euros more than the target for the end of the year.”

The UTAO also said that public debt could remain above the 60 percent set in the Budget Treaty until at least 2045 and that if average budget deficits since the creation of the euro continue, there will be an “unsustainable trajectory.”

The parliamentary technical support unit also estimated that “maintaining a public deficit of around 3 percent would lead to a relatively limited debt reduction, and a value of below 110 percent of GDP will only be achieved in 2040.”

“It won’t be possible to reduce public debt significantly in a context that does not change the current budget policy since joining the euro.” (macauhub/PT)