The leadership of Santana Lopes was marked by a number of inherited economic and political problems. When his party took power, after the 2002 legislative elections, the country’s economy was in a poor state, with a rising government-spending deficit, partially because of policies focused on public expenditure by the previous governments (led by António Guterres of the Socialist Party) and the early 2000s recession. According to the Economist Intelligence Unit, "Portugal became the first country to breach the EU's 'excessive deficit' rule with a budget deficit of 4.4% of GDP in 2001, well above the 3% of GDP ceiling set by the EU's Stability and Growth Pact." The situation inherited by Santana Lopes was a little better, as the previous government led by Barroso had been able to comply with European Union directives regarding the deficit by selling State assets.