LISBON, May 26 (Xinhua) -- Portuguese Prime Minister Antonio Costa said on Friday that a climate of economic and financial confidence was an "absolutely critical factor" for the future of the country.

He added the European Commission's recommendation to close its excessive deficit procedure was important. "It was a vote of confidence in the Portuguese economy and in Portugal's ability to have turned a page in the framework of financial difficulties," he said during a speech in Coimbra, northern Portugal, according to Lusa news agency.

"It was an important decision to be able to improve our international reputation, to have better conditions to finance our economy, to spend fewer resources on the debt service and to continue to reinforce the country's ability to attract investment," Costa added.

He also warned the country must continue to reinforce confidence in order to be successful.

"It is due to confidence that there has been investment and thanks to investment there has been growth and creation of jobs. That is the path we must follow," Costa pointed out.

His Socialist party is celebrating a year and a half since it took power backed by the Left Bloc and Communist Party in parliament.

Since taking power, the Socialist Party has raised pensions and reversed public sector cuts, with the government expecting more than 2 percent growth this year fuelled by exports and investment. However, the country is still struggling with a public debt amounting to over 130 percent of GDP. Enditem

Go to Forum >>0 Comment(s)