|Author (Person)||Scarpetta, Vincenzo|
The European Commission could ask the new Portuguese government in the spring of 2016 to tweak its draft budget for 2016 and implement bigger structural deficit cuts. Such a request could put Portuguese Prime Minister António Costa on a collision course with either the Commission in Brussels, or his leftist allies in Lisbon.
In a letter sent by the European Commission to Portugal on the 27 January 2016 the Commission highlighted risks of 'particularly serious non-compliance' with eurozone deficit-reduction obligations. Rating agencies also threatened downgrades.
|Countries / Regions||Portugal|