Portugal’s latest austerity budget goes to vote

Associated Press

7:37 pm | Tuesday, November 26th, 2013

Lawmakers of the government coalition parties stand up to vote approving the government’s 2014 state budget proposal at the Portuguese parliament in Lisbon Friday, Nov. 1 2013. AP FILE PHOTO

LISBON, Portugal—Portugal’s coalition government is set to use its majority in Parliament to approve its 2014 state budget despite the fierce objections of opposition parties and labor groups.

The spending plan will bring a third straight year of austerity and is demanded by creditors who granted Portugal a 78 billion-euro ($105 billion) bailout in 2011.

The budget aims to save 3.9 billion euros—about 2.3 percent of gross domestic product. Lawmakers were due to vote on the budget Tuesday.

Among other measures, government workers earning more than 675 euros a month will have their pay cut by between 2.5 and 12 percent and their pensions will be reduced by 10 percent on average.

Several thousand protesters converged on Parliament ahead of the vote.

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