LISBON, Oct 6 (Reuters) - Portugal has to meet its budget deficit goals agreed with the European Union as it needs to maintain the confidence of markets to refinance its debt, Bank of Portugal governor Carlos Costa said on Monday.
“We have to meet (the budget deficit goals),” Costa told a conference.
“This point is urgent if we do not want to repeat the errors of the past and we enter into a stop and go cycle which has consequences from the point of view of investor confidence and economic development,” he said.
Last week Portugal said its budget deficit would be above this year’s goal of 4 percent of gross domestic product agreed with the European Union.
Reporting By Sergio Goncalves and Daniel Alvarenga, writing by Axel Bugge