Portugal denies need for EU bailout; says 2010 budget deficit beats forecast

Amid growing concerns of a looming financial rescue, the Portuguese prime minister Jose Socrates further reiterated yesterday that his country would not need an international bailout similar to Greece and Ireland.

The prime minister said that the 2010 budget deficit is expected to be below the set target of 7.3 per cent of gross domestic product (GDP), according to preliminary data, and described it as an ''excellent result for Portugal.'' He did not reveal the exact figure.

''The country is doing its job and doing it well. Portugal will not request financial aid for the simple reason that it's not necessary.'' Socrates was speaking at a press conference in Lisbon along with the finance minister Fernando Teixeira dos Santos. 

The prime minister said rumours that the country is under pressure to seek a bailout are hurting the nation and only helping speculators.

Socrates expects the country's economy to grow nearly double of 2010 over the initial forecast of 0.7 per cent. 

The prime minister said that government revenues increased while spending reduced compared to forecasts. Revenue was up at 5.3 per cent against the predicted 4.5 per cent, while spending rose 1.7 per cent, lower than the estimated 2.5 per cent.