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Portuguese politicians clash over nation's progress in parliament debate

Xinhua, May 28, 2016 Adjust font size:

Portuguese Prime Minister Antonio Costa and former prime minister Pedro Passos Coelho clashed on Friday at parliament, divided over Portugal's progress since the Socialist government came to power.

At a quarterly debate at Lisbon Parliament, Costa said the first six months of governance had been difficult but that the country had embarked on a new positive path.

"We showed the capacity to overcome every difficulty. It is that resilience which is making it possible to turn the page of austerity and open a new path, for Portugal to become a more just and equal country," he said.

However Passos Coelho challenged the new prime minister's stance, claiming that the results were "plain to see" and pointing out that unemployment had risen and investment had fallen. He also reminded Costa that Portugal had surpassed the EU's 3 percent deficit to GDP ratio benchmark.

Costa said sanctions had been brought up due to the fact that Portugal had not met its targets in 2015.

Portugal ended a three-year bailout program in May 2014, and during that program the center-right government led by Passos Coelho implemented harsh spending cuts and tax hikes to meet deficit targets.

While Passos Coelho managed to bring down the budget deficit from 10 percent in 2010 to around 3 percent last year, the economy is still weak, with the debt burden standing at almost 130 percent.

Socialist leader Antonio Costa, who took office last year, has been a harsh critic of the austerity measures applied in these years which saw public employees' wages cut, companies privatized and unemployment soar.

He plans to cut the deficit next year to 1.4 percent and wants to "turn a page on austerity." However, he has been facing increasing pressure by the European Commission and has had to soften his rhetoric, in turn risking upsetting his left-wing allies, the Communist Party and Left Bloc. Enditem