Bailed-out Portugal Plans Another $6.3 Billion in Cuts
Portugal to raise retirement age, lay off 30,000 amid effort to save $6.3B over 3 years
May 3, 2013
AP - Portugal's prime minister says he plans to
raise the retirement age to 66 from 65 and lay off some 30,000
government workers in measures that aim to save 4.8 billion euros ($6.3
billion) over the next three years.
Pedro Passos Coelho said in a televised address to the nation Friday
that the new measures are needed to ensure Portugal won't require
another bailout.
Portugal got a 78 billion euro rescue in 2011 after overspending, heavy debts and weak growth left it close to bankruptcy amid the eurozone's financial crisis.
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.
Portugal got a 78 billion euro rescue in 2011 after overspending, heavy debts and weak growth left it close to bankruptcy amid the eurozone's financial crisis.
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.
