Portugal’s Prime Minister Pedro Passos Coelho has been locked in talks with business and trade union leaders.
He has taken what analysts believe is a rare step of leading a negotiating team to meet with the leaders who oppose a planned austerity drive in return for last years 78 billion euro rescue package.
One U-turn by his government is on a decision concerning two extra payments which are paid annually to Portuguese people.
“The government is now looking to prepare a proposition to pay back across all sectors a partial amount of the tax which has been taken from the summer and Christmas payments,” the PM explained and also said he will continue to negotiate with unions and business leaders over new ways to raise revenues which could include separate income tax rises or changes to property tax.
The leader of the country’s biggest union, Armenio Carlos said he wanted to show the government there are other alternatives and options.
Get a different perspective
Every story can be told in many ways: see the perspectives from Euronews journalists in our other language teams.