IF THEY CAN ENACT AUSTERITY MEASURE, THEN WE CAN, TOO.
Portugal's minority government and main opposition party agreed Saturday on a package of austerity measures aimed at steering the country out of a financial crisis that has contributed to investor unease about the soundness of the euro currency.
Portugal, like other eurozone countries Greece, Ireland and Spain, needs to slash a high debt load that is threatening to ruin its economy and could further weaken prospects for a European economic recovery.
The center-left Socialist government drew up plans to hike taxes and curb spending next year but didn't have enough votes in Parliament to get approval for its proposals.
Saturday's deal with the center-right Social Democratic Party ensured the plan will be enacted after a parliamentary vote next week on the government's spending plans for 2011.
The Social Democrats said in a statement that the deal "mitigated the most negative consequences" of the 2011 state budget. The government, it said, agreed to review major public works projects planned to be carried out in partnership with private companies. Those projects would drive up the national debt, it said.
Portugal is the latest of the 16 nations using the euro currency to adopt austerity measures amid continentwide economic woes.
Saturday, October 30, 2010
PORTUGAL ENACTS AUSTERITY DEAL
Posted by Reliapundit at 7:08 PM