PORTUGAL: Prime Minister Pedro Passos Coelho reaffirms his government's commitment to the EU-IMF bailout plan as parliament starts to debate the country's 2012 budget

Record ID: 593321

  • Title: PORTUGAL: Prime Minister Pedro Passos Coelho reaffirms his government's commitment to the EU-IMF bailout plan as parliament starts to debate the country's 2012 budget
  • Date: 11th November 2011
  • Summary: LISBON, PORTUGAL (NOVEMBER 10, 2011) (REUTERS) PORTUGUESE PARLIAMENT BUILDING PROTESTERS OUTSIDE PARLIAMENT PREPARING FOR AFTERNOON PROTEST VARIOUS OF BUDGET DEBATE INSIDE PARLIAMENT PORTUGUESE PRIME MINISTER PEDRO PASSOS COELHO DURING PARLIAMENTARY DEBATE VARIOUS OF BUDGET DEBATE IN PARLIAMENT (SOUNDBITE) (Portuguese) PORTUGUESE PRIME MINISTER PASSOS COELHO SAYING: "The government cannot undermine the objectives, the targets of some strategic provisions. For example the preponderance of the fiscal effort must come from spending not from revenues, but the government will discuss all the proposals that can make the budget even more effective, even more robust, even more credible." DEPUTIES DURING BUDGET DEBATE (SOUNDBITE) (Portuguese) MAIN OPPOSITION LEADER, ANTONIO JOSE SEGURO, SAYING: "The Socialist Party will try everything to stop the VAT tax from increasing for restaurant businesses, will do everything to return one bonus salary to public servants and one month's pay to pensioners. We consider that Mr. Prime Minister has a margin in the budget to do so, and we will demonstrate it during the debate." DEPUTIES (SOUNDBITE) (Portuguese) PORTUGUESE PRIME MINISTER PEDRO PASSOS COELHO SAYING: "This budget has no safety cushions or leeway, this budget is constructed in a way that is absolutely clear and transparent." DEPUTIES DURING DEBATE
  • Embargoed: 26th November 2011 12:00
  • Keywords:
  • Location: Portugal, Portugal
  • Country: Portugal
  • Topics: Economy,Politics
  • Reuters ID: LVA6GQIXD6KCAG4H0NFT1FF4KKY
  • Story Text: Portugal's prime minister told parliament on Thursday (November 10) that the government is committed to the austerity measure called for by the EU-IMF bailout plan but is open to suggestions that contribute to improving the 2012 budget.
    "The government cannot undermine the objectives, the targets of some strategic provisions. For example the preponderance of the fiscal effort must come from spending not from revenues, but the government will discuss all the proposals that can make the budget even more effective, even more robust, even more credible," Passos Coelho said to deputies in parliament as they prepared to discuss the 2012 budget.
    In the 2012 budget, the government will eliminate civil servants' year-end and holiday bonuses and extend working hours so the country can regain credibility and meet tough fiscal goals agreed under the country's 78 billion euro bailout plan.
    The Socialist Party opposition leader Antonio Jose Seguro, however, said he would show in the parliamentary debate that alternatives to the cuts announced by the central right coalition government were possible.
    "The Socialist Party will try everything to stop the VAT tax from increasing for restaurant businesses, will do everything to return one bonus salary to public servants and one month's pay to pensioners. We consider that Mr. Prime Minister has a margin in the budget to do so, and we will demonstrate it during the debate," Seguro said.
    The 2012 budget sees the economy shrinking 2.8 percent next year, deeper than the 2 percent contraction envisaged when Portugal agreed its bailout plan with the European Union and International Monetary Fund in May.
    "This budget has no safety cushions or leeway, this budget is constructed in a way that is absolutely clear and transparent," Passos added.
    Under its bailout agreement, Portugal must cut the budget deficit to 4.5 percent of gross domestic product next year from a targeted 5.9 percent in 2011 and 9.8 percent last year.
    Opposed to the budget, unions have called for a general strike on November 24, to protest against the austerity measures included on the bill.
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