The German finance minister, Wolfgang Schäuble, said on Friday that Portugal “has to do everything in their power to counteract the uncertainties in the financial markets,” referring to the “right path yet does not allow to be good. “
in a press conference after the meeting of the Economic and Financial Affairs (Ecofin) in Brussels, Schäuble said that his Portuguese counterpart, Mario Centeno,” know Portugal must do everything in its power to counter the insecurity in the financial markets. ” “Because, of course, know that Portugal was on track. But this track yet allows Portugal to be fine. Is this the situation. It is just the desire not to return to have again the problems that existed a few years in Portugal, “he said.
Schäuble assumed that European ministers attending with” concern “to increases in interest rates Portuguese debt in financial markets. “That’s what worries us and all finance ministers have enough knowledge to know that this is an additional burden on the budget,” he noted, adding that national authorities should “avoid any situation which insecurity in the markets.” “And they were apparently created some insecurities. And this has been duly appointed by the Commission,” he said.
Already on Thursday, the entrance to the meeting of eurozone ministers, Schäuble had noticed the need for Portugal not to deviate from the path, because the markets had shown some nervousness. “We will continue to strongly encourage our Portuguese colleagues not to stray from the path of success so far traveled,” said the Minister, indicating that “markets are getting nervous.”
Meanwhile, in final conference of the Eurogroup, the Director of the European Financial Stability Mechanism, Klaus Regling, said he was “reassuring” that Portugal has undertaken to prepare additional measures may be necessary, as the markets reacted negatively to budgetary uncertainties.
the Eurogroup endorsed on Thursday the European Commission analysis, which on Friday gave “green light” to the budget plan after Lisbon have introduced additional measures, the overall estimated impact will vary between EUR 970 million (expectations of Brussels) and EUR 1125 million (Government projections). The difference of 155 million euro did not prevent the Commission to give its approval to the draft budget, while pointing to the risk of default. The Eurogroup has asked Portugal to work on additional measures that can be applied, if necessary, to ensure that the country complies with the European commitments.