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Riot policemen stand guard outside the Portuguese parliament beside a fire set by demonstrators during a protest against the government's 2013 budget, Monday, Oct. 15, 2012. Francisco Seco/AP/Press Association Images
Portugal

Portugal government faces backlash over austerity

Demonstrators gathered outside Parliament after the Finance Minister announced his plans to introduce steep tax increases.

PORTUGAL’S COALITION GOVERNMENT is facing a hail of criticism after announcing steep tax increases in its draft budget for next year.

Finance Minister Vitor Gaspar met Tuesday with the governing parties’ lawmakers, aiming to quell signs of revolt in their ranks ahead of Parliament’s vote on the budget proposal later this month.

The broad national consensus that formed around the terms of Portugal’s €78 billion bailout last year is fraying amid the tough new austerity measures. The backlash presents another problem to Europe’s efforts to contain its debt crisis.

Opposition parties and trade unions led the outcry against the latest belt-tightening, while 10 police were slightly hurt in scuffles with a group of demonstrators outside Parliament yesterday evening after Gaspar announced his plans.

Read: Portugal ‘on track’ with bailout programme, says IMF>

Read: Portugal to pump €6.65 billion into three banks, passes bailout review>

Author
Associated Foreign Press
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