Portugal's Constancio sees 'difficult' steps ahead

Portugal's central bank governor has called for ``new and difficult'' steps to prevent the budget deficit from soaring back above European limits.

``The situation is a little bit worse than before,'' central bank chief Vitor Constancio told reporters at a meeting of European finance officials in Luxembourg. ``That requires difficult decisions.''

Constancio is heading a panel to assess the government's finances and test whether the European Commission's forecast of a Portuguese deficit of 4.9