Portugal PM ready for EU battle over deficit

Prime Minister António Costa last night challenged news that Portugal could face fines and a cut in EU funding for exceeding strict deficit rules imposed by Brussels.

While the period in question covers the years that the previous centre-right government was in power, Prime Minister Costa accused the EU of double-standards.

He argued that the previous government was constantly the recipient of praise for carrying out austerity measures, and that it would therefore be unjust to impose sanctions.