The second Excessive Deficit Procedure notification the INE sent Brussels today, in 2014 the public administrations had a budget deficit of €12.446 billion, equivalent to 7.2% of GDP.


This new figure revises up the details in the first EDP, a situation the INE justified with “the inclusion of €4.9 billion regarding the capitalisation of Novo Banco as a capital transfer ".


The INE recalled that, "If Novo Banco was not sold within a year (as is the case), the capital would be recorded as a general case, foreseen in the public administration debt and deficit manual, when money is injected into a state company".