Portugal's Socialist leader slams government for austerity program

The Portuguese government's austerity program was a "failure" and lead to weak economic growth, Portuguese opposition Socialist Party leader Antonio Costa said on Monday.

"This austerity program failed: it didn't produce results wished for, on the contrary, it contributed day after day to the weakening of our economy," said Costa after a meeting with business people at the northern district of Mangualde, around 240 km from Lisbon.

"As I have insisted, we have to focus on what is essential, which is producing, creating wealth, mobilizing companies and people for this joint effort of production and growth," he added.

His comments came after the Bank of Portugal revealed on Monday that Portugal's public debt stood at 128.7 percent of GDP at the end of 2014, higher that the government's forecast last October.

Portugal signed a 78-billion-euro bailout program in May 2011 with the European Commission, the International Monetary Fund and the European Central Bank when it was on the verge of bankruptcy, and successfully exited that program in May last year.

The center-right government lead by Prime Minister Pedro Passos Coelho has been imposing harsh measures in past years, including spending cuts and tax hikes as it struggles to lower its high public debt.

Portugal's budget this year includes further austerity as it aims for a deficit of 2.7 percent of GD in 2015.

Portugal will hold general elections this autumn and Lisbon Mayor Antonio Costa, leader of the Socialist Party is expected to win the race, according to recent opinion polls. Enditem