Portugal: Parliament adopts 2014 austerity budget in difficult social atmosphere

Today, November 26, the National Assembly of Portugal is going to adopt the 2014 austerity budget, the third since the right-wing government came to power in 2011.  The Finance Act plans to save €4 billion in order to keep its promise to limit the public debt to 4 percent of GDP in 2014.  once again, civil servants will be the most affected by austerity next year.  Union protest – at general and sectoral level – is growing as the Constitutional Court recently validated an increase in the workweek in the civil service, from 35 up to 40 hours.  (Ref.  130741)
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Austerity budget. Today, the Portuguese Parliament is adopting the 2014 Finance Bill. The budget confirms savings of €4 billion next year – one third coming from cutting personnel expenses in the civil service. A cutting scale ranging between 2.5 and 12 percent will be applied, depending on the categories. The limit – initially €600/month – is now €675. until now, pay cuts were applied to wages of €1,500/month or more. Staffing cuts, income freezes and career progressions are maintained.

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