Merkel says Portugal meeting all bailout commitments

LISBON Mon Nov 12, 2012 4:39am IST

German Chancellor Angela Merkel casts her shadow on an European Union (EU) flag as she arrives for a news conference after talks with Yemen's President Abd-Rabbu Mansour Hadi in Berlin, October 4, 2012. REUTERS/Tobias Schwarz

German Chancellor Angela Merkel casts her shadow on an European Union (EU) flag as she arrives for a news conference after talks with Yemen's President Abd-Rabbu Mansour Hadi in Berlin, October 4, 2012.

Credit: Reuters/Tobias Schwarz

LISBON (Reuters) - German Chancellor Angela Merkel said on Sunday Portugal has fully met all the goals it set in its 78-billion-euro bailout, adding the Iberian country does not need new financial help.

"Portugal is meeting the commitments it has taken on very well," Merkel told Portuguese broadcaster RTP, a day before making a trip to Lisbon.

When asked if Portugal needs a new bailout, as some economists have argued, Merkel said: "I don't have this view."

Portugal's lenders, the European Union and IMF, have approved all reviews of the economy so far but they agreed this summer to relax Lisbon's budget goals after tax revenues fell short due to a deep recession.

The country entered its deepest economic slump since the 1970s this year, when the economy is expected to contract 3 percent. Unemployment is at record highs above 15 percent and is seen rising further in 2013.

Merkel said Portugal's reforms would take time but that at the end of the process they would pay off, pointing to reforms adopted by Germany which took many years to translate into economic gains.

Portugal's center-right government is hoping to win renewed support from Europe's biggest creditor during Merkel's visit.

Prime Minister Pedro Passos Coelho has stressed that his country's only option is to fully meet the terms of its bailout in the hope of emulating the recovery of fellow bailout victim Ireland rather than Greece's crisis.

(Reporting By Axel Bugge; Editing by Stephen Powell)

Reforms Push

REUTERS SHOWCASE

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

26/11 Plotter

26/11 Plotter

Pakistan to challenge bail for Mumbai attack "mastermind".  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage