Commissioner says EU remains vigilant over Portugal's budget measures

European Commissioner for Economic and Financial Affairs Pierre Moscovici said here on Thursday that he will be working closely with the Portuguese government to put the country back on track.

Portuguese Prime Minister Antonio Costa had committed to presenting additional budget measures for Portugal to meet its deficit targets but these were not discussed as expected during Moscovici's visit.

Moscovici, however, said Brussels was still vigilant. "We will not give lectures or interfere wrongfully in national political decisions, but we will advise and if necessary convince (the country)," he told a press conference in Lisbon's finance ministry, adding that Portugal is still in a fragile situation amid a world financial crisis.

Portugal's budget for 2016 was approved in February after much discussion between the government and the European Commission, and aimed for a deficit of 2.2 percent.

The budget was approved by an alliance of left-parties with the Socialist government backed by the Left Bloc and Communist Party.

The government intended to reverse harsh austerity which was imposed under a 78-billion-euro bailout program the country signed in 2011 with its international creditors, involving tax hikes and spending cuts.

While the European Commission has pushed the country to add additional measures to meet European Union (EU) rules, Portuguese Finance Minister Mario Centeno has insisted these won't be necessary.

Portugal's economy grew 1.5 percent last year, from 0.9 percent in 2014. The country aims to cut its deficit to 3 percent this year, but the EU has said it will be impossible without further policy changes.

The European Commission said in a statement on Thursday that Portugal will continue to receive European funds, due to the Commission approving all of the country's reports and assessments. Enditem