Brussels, 30/11/2011 (Agence Europe) - On Wednesday 30 November, the Portuguese parliament passed a budget for 2012 that will make sweeping cuts in public spending to help the country (which is receiving international aid) reduce its debt and public deficit.
The Portuguese finance minister, Vitor Gaspar, told the parliament that it was the toughest budget since the country returned to democracy in 1974, but it was needed to win back the confidence of ordinary Portuguese people, the markets and international partners. The budget was approved by a comfortable majority by the centre-right coalition. In May 2011, Portugal was given a €78 billion loan by the International Monetary Fund and the European Union, but in return was required to introduce a tough austerity programme to reduce its deficit from 9.8% of GDP in 2010 to 4.5% by 2013. Gaspar said the aim of reducing the deficit to 5.9% this year would be achieved due to special income arising from the transfer of Portuguese banks' pension funds to the state social security system. (LC/transl.fl)