Portugal: government announces new severity measures to put public accounts back on their feet by 2013

On a diet. Portugal’s Prime Minister, José Socrates, announced an additional series of severity measures to speed up the return to balanced State accounts in 2013. The Stability and Growth Program (PEC in Portuguese) sent to Brussels and accepted by the European Commission, provided for a return to a deficit amounting to 8.3% of GDP this year (as opposed to 9.4% currently) but the new target is 7.3%. In 2011, the deficit will have to amount to 4.6% as opposed to the 5.1% planned by the PEC. In concrete terms, Portugal has to cut expenses by €3bn in two years, not three as initially planned.
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mmission, provided for a return to a deficit amounting to 8.3% of GDP this year (as opposed to 9.4% currently) but the new target is 7.3%. In 2011, the deficit will have to amount to 4.6% as opposed to the 5.1% planned by the PEC. In concrete terms, Portugal has to cut expenses by €3bn in two years, not three as initially planned.

Tax option. The new series of measures adopted by the Council of Ministers on Thursday, may 13th, was negotiated with the key right-wing opposition party (PSD, social

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