EU and Portugal clash on budget plan for 2016

The European Commission says there are “big differences” in talks with Portugal about the nation’s draft budget plan for 2016, which aims to reverse measures that the previous government implemented as part of a bailout programme.

“As for the discussions that are ongoing, there are big differences and we are working with the Portuguese authorities to close the gap,” said Annika Breidthardt, EU spokeswoman for economic policy.

Portuguese prime minister Antonio Costa’s minority socialist government plans to reverse state salary cuts and bolster family incomes, easing austerity measures faster than the previous administration proposed.