|Antonio de Sousa|
The timing could not have been worse for Portugal's governing socialist party. A month ahead of the elections, when it is already lagging behind in the polls, the EU slaps it on the wrist over public spending, an issue central to both parties' campaigns.
It will come as no surprise to Antonio de Sousa, who was the governor of Portugal's central bank between 1994 and 2000 before becoming president of Caixa Geral de Depositos. De Sousa can sit back and relax in the knowledge that he said "I told you so".
De Sousa says the warning was timely and that the spending model that the government was following was already reaching its limits by the end of 1998.