The resolution measure applied to Banco Internacional do Funchal (Banif) caused the budget deficit in Portugal in 2015 to increase to 4.4 percent of GDP, more than double the Eurozone average, Eurostat said Thursday.
The European Union’s statistics office also reported that external debt at the end of the year stood at 129 percent of gross domestic product, one of the highest in the European area.
Data validation of the budget deficit and public debt in 2015 by Eurostat occurs after the Member States have filed their first notification of the excessive deficit procedure (EDP).
Under the rules of the Stability and Growth Pact an excessive deficit procedure is launched when the budget deficit exceeds 3 percent of gross domestic product (GDP), and this was precisely the value achieved by Portugal in 2015 without taking into account the 1.4 percentage point impact of the resolution measures applied to Banif. (macauhub/PT)