Portugal to approve austerity plan

Portuguese politicians are poised to authorise an unprecedented set of tax increases despite concerns that the latest austerity package will deepen the bailed-out country’s recession.

Portuguese politicians are poised to authorise an unprecedented set of tax increases despite concerns that the latest austerity package will deepen the bailed-out country’s recession.

Though the centre-right coalition government has enough votes to pass the package today, the debate is likely to be heated as lawmakers argue over what is the best way out of the country’s debt crisis.

Opposition parties, trade unions and business leaders complain the budget does not do enough to revive an economy that’s headed into a third straight year of recession.

The deficit-reduction measures will cost most workers and pensioners the equivalent of at least a month’s income next year.

If the government’s remedy fails to get the bailed-out country back on its feet, Portugal’s financial crisis will likely be compounded by a political one.

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