Portugal has announced a stimulus package worth €2.18bn focused on
renovating schools, investing in clean energy and financing small
companies that will lift the country’s budget deficit to twice the
level initially planned for 2009.
The measures are among the first concrete responses to the European
Union’s €200bn ($267bn, £179bn) fiscal stimulus plan endorsed by
national leaders at a summit on Friday. José Sócrates, Portugal’s
Socialist prime minister, said his “investment and employment
initiative” was designed to work in harmony with other EU countries.
Mr Sócrates said the package would increase Portugal’s deficit to no
more than 3 per cent of gross domestic product, the maximum limit for
eurozone countries. It had previously agreed with the European
Commission on a 2009 deficit of 1.5 per cent of GDP before lifting its
target to 2.2 per cent in October.
“These measures will simultaneously increase our competitiveness and
provide jobs for local businesses,” Manuel Pinho, Portugal’s economy
minister, told the Financial Times.
The extra government spending would encourage an estimated €5bn in
additional private sector investment, he said.
Portugal will finance the package with €1.3bn from its national budget
and €880m from EU funds.
Lisbon unveils economy boost