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Public debt leaps over €800 million in four weeks as PS also beset with financial difficulties

With news that Portugal’s public debt leapt over 800 million euros between June and July, PS leaders have been having to deal with added negative publicity today over the state of the party’s own coffers.

According to Jornal de Notícias this (Friday) morning, the party leading Portugal’s government is “bankrupt”, with debts of over €21 million.

The “complex financial situation” has meant that the PS cannot pay its water or electricity bills, has had to cancel various initiatives, and is using money of its members who have suggested they never expect to see it again.

Needless to say, the party has issued a rebuttal, saying that “there is an enormous difference between a complex financial situation and bankruptcy”, and that the situation is set to improve over the year as debt repayments have been renegotiated.

But the story adds to damage being heaped on the country’s leaders as the reality of the nation’s public debt sinks in.

At the end of July this year, it stood at 240.9 billion euros. This is precisely 836 million more than it was the month before, and 118 billion euros on top of totals registered in July last year.

The habitual ‘slagging-match’ between this year’s government and right-wingers who were in power last year continues, but the truth is that the country’s debt ratio is not heading in the right direction.

As papers explain, it now stands at 131.9% of GDP.

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PHOTO: – PM António Costa and Finance Minister Mário Centeno have lots on their minds