This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bailed-out Portugal Plans Another $6.3B In Cuts

Many people blame the government's spending cuts and tax hikes for a recession that is forecast to continue for a third straight year in 2013. Unemployment is at 17.5 percent, and the government predicts it will reach 18.5 percent next year.

Passos Coelho appealed for understanding. "People of Portugal, I know you are asking whether all the sacrifices will be worthwhile. I can assure you, they are," he said.

"The benefits (of austerity) will come," he said. "We cannot give up."

He said he is willing to discuss his plans and possible alternatives with opposition parties, trade unions and business leaders. They have all rounded on the government in recent times as the broad national consensus which greeted the initial bailout agreement has frayed.

Two years of tax hikes and pay cuts have improved Portugal's fiscal record, even if they hurt growth. Last year, the budget deficit stood at 6.4 percent. In 2010, it was 10.1 percent. Still, more needs to be done to hit the deficit target of 2.5 percent by 2015 and make public finances sustainable in the medium term, Passos Coelho said.

"We haven't yet resolved our public debt problem," he said. "We've reduced it, but we need to cut more."

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs