- CNTV English - CCTV News

Portugal announces more austerity measures

05-14-2010 10:03 BJT Special Report: Europe's Debt Crisis |

Watch Video

Play Video

Portugal has announced a package of additional austerity measures. The government hopes the measures will cut the 2010 budget deficit by 2 billion euros and avoid a Greek-style debt crisis.

Portuguese Prime Minister Jose Socrates and opposition leader Pedro Passos Coelho agreed on the austerity package on Thursday.

It includes 5 percent pay cuts for senior public sector staff and politicians. There are also increases between 1 and 2.5 percent on value-added tax, income tax and profits tax.

Jose Socrates said, "These measures are crucial and necessary for Portugal's credibility and confidence. We want to assure everyone that we can finance the Portuguese economy."

Portuguese Prime Minister Jose Socrates, right, talks to journalist during a joint news conference with Portuguese Finance Minister Fernando Teixeira Dos Santos at the Cabinet building on Thursday, May 13, 2010 in Lisbon, Portugal. Socrates announced new austerity measures to cut further the deficit in 2010 and 2011, in Portugal, including an increase in value added tax.(AP Photo/ Francisco Seco) 
Portuguese Prime Minister Jose Socrates, right, talks to journalist 
during a joint news conference with Portuguese Finance Minister 
Fernando Teixeira Dos Santos at the Cabinet building on Thursday,
May 13, 2010 in Lisbon, Portugal.(AP Photo/ Francisco Seco)

The government pledges to cut the deficit to 7.3 percent of GDP this year and 4.6 percent in 2011.

Last year the deficit hit 9.4 percent, prompting a sell-off of Portuguese assets by investors.

The cross-party understanding came a day after Spain announced additional cuts in public spending and civil service wages.

The streets of Lisbon, along with the country's stock market, remain calm following the announcement.

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program