OK Dismay over new Portuguese austerity measures
They are designed to slash national debt and help meet the terms of a 78 billion euro bailout.
Nevertheless, fresh austerity measures announced by Portugal’s prime minister are already attracting widespread criticism. Passos Cuelho has warned his country to prepare for deepening hardship, with more pay cuts and tax increases on the way.
“Recessionary measures that were implemented over the last 120 days by his government have not solved any problems,” said Carlos Zorrinho, Socialist leader in the Portuguese parliament.
“They have worsened the situation and increased the level of sacrifices being demanded of the Portuguese.”
Some public sector workers will lose their annual bonus and holiday pay, as part of the extra belt tightening. There will also be cuts in health care and education.
“They are applying very hard measures to the Portuguese people,” said Ana Rosa, who works for a private company. “They are taking away from us, while increasing taxes and cutting other benefits.”
Police officer Jose Garcia added: “We are going to be worse off, worse off because consumption is going to decrease drastically and the state will not have any funds.”
While there is dismay about the extra austerity measures, the reality is that Portugal is falling short on it debt reduction targets. According to the prime minister, the situation is dire.
Dismay over new Portuguese austerity measures