http://www.expresso.pt/ pt-PT Wed, 19 Jun 2013 18:45:00 GMT http://www.expresso.pt/i/logo_expresso_rss.gif http://www.expresso.pt/ Joao Moreira Rato, chairman of the IGCP (Portuguese Treasury and Public Debt Agency), in an interview to The Wall Street Journal, said that Portugal isn't targeting any "specific date" for a market return and that following an October bond swap that cut the September 2013 debt repayment, the country now has its 2013 funding needs largely covered. ]]> In an interview published in Tuesday's edition of the Jornal de Negocios, Joerg Asmussen, Member of the ECB's Executive Board, said Portugal took "a significant step forward" with the issuance of a three-year bond as part of a bond swap in October, but that was "not enough". Asmussen explained that access to the OMT - ECB's backstop mechanism - requires the ability to issue "reasonable amounts of bonds with longer maturities," and stressed that this necessary condition is not sufficient. He pointed that the activation of the OMT is a decision of the ECB's Governing Council. ]]> In a television interview, last night, Portuguese prime-minister recognized that it is hard to fight the current level of spending to meet budget deficit targets without affecting also the sectors that are most sacred to most people: welfare benefits, and public sector costs of wages, health and education. ]]> Portuguese parliament approved 2013 State budget, which aims to cut the budget deficit to 4.5 percent of GDP and envisages 1 percent GDP decline. ]]> The OECD released its Economic Outlook for 2013 and 2014. For Portugal, the OECD projects a GDP contraction of 1.8% in 2013 and 0.9% growth in 2014. It mentions that "Strict implementation of consolidation plans should remain the priority" and that "A large, but necessary, fiscal consolidation, continued bank deleveraging and weak external demand are projected to leave the economy in recession for some time." ]]> On yesterday's visit to Portugal, German Chancellor Angela Merkel was certainly endorsing the Portuguese government reform drive to honor the bailout agreement. But the visit was not just political. Merkel and the Portuguese Prime Minister, Passos Coelho, seemed focused on generating confidence to attract investment to Portugal. In an auditorium in Centro Cultural de Belém, a whole day conference gathered German and Portuguese CEOs and bankers, to explore cooperation. If Merkel's visit would count for one single point, that auditorium packed with CEOs and bankers from both countries, discussing strategy, would fit. Adding to that, Carlos Costa, Banco de Portugal Governor, and ECB Governing Council member, had lunch with German and Portuguese bankers. In the morning, Portuguese Economy Minister, Santos Pereira, signaled the government willingness to slash taxes on corporate investment, but resistance at EU level is now expected. ]]> Portuguese parliament approved today the broad guidelines of the 2013 draft budget. The bill will be discussed in committees and the final vote is scheduled for November 27. In a response to the rising social discomfort with unpopular measures, the center-right ruling coalition is calling for broad support to a major rethinking of the functions of the State to allow the permanent reduction of the deficit. ]]>