Skip to comments.Portugal Unveils Budget Cuts
Posted on 05/03/2013 4:38:15 PM PDT by Oldeconomybuyer
LISBON - Portugal's prime minister laid out a three-year plan Friday to reduce the country's budget deficit that would shrink the number of public employees, add more working hours and raise the retirement age by a year, to 66.
The plan, which aims to save 4.8 billion ($6.1 billion) through 2015, is certain to face resistance from the Socialist-led opposition and trade unions. They accuse the conservative government of trying harder to satisfy Portugal's international creditors than to spare the country - the poorest in Western Europe - from further hardship.
Portugal, entering the third year of a recession with 17% unemployment, is struggling to fulfill the terms of the 78 billion bailout it accepted two years ago. It also wants to avoid the need for a new rescue when the bailout loans run out next year.
Labor leaders accuse the government of dismantling Portugal's social welfare state. Local elections coming up in October could prompt opposition parties to dig in.
"Every time there is a 1 billion cut in government spending, that has a negative effect in the economy and raises unemployment," said Socialist leader António José Seguro. "That has been the story over the last two years."
The head of Portugal's largest union confederation, Arménio Carlos, has come out against any increase in hours worked per week in the public sector. The confederation has scheduled street demonstrations for May 30.
(Excerpt) Read more at online.wsj.com ...
is the 66 yr level for the regular citizens and the govt employees continue to retire in their 40’s or 50’s?....like here where we have them “retiring” sometimes in their late 30’s...