The Portuguese government Thursday followed Spain’s lead in agreeing with the main opposition party on more austerity measures to cut the deficit faster than planned, to 4.6 percent of gross domestic product next year from 9.4 percent last year.
To help restore investor confidence, José Sócrates, the Socialist prime minister, will rely on tax increases and cuts in wages and corporate subsidies to erase an additional €2.1 billion, or $2.7 billion, from the deficit. “These measures are necessary to obtain what’s essential, the financing of the Portuguese economy, but also to defend the euro,” Mr. Sócrates said.
GOOD.
WE NEED SOME OF THAT AUSTERITY HERE, BUT SANS THE TAX HIKES.
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