Major austerity drive in Portugal deemed illegal

Portugal's constitutional court issued a ruling on the 19 December 2013 which blocked one of the key and controversial austerity measures in the 2014 budget. The measure would have cut up to 10% in civil service pensions.

In the ruling the measure was described as unconstitutional as it 'violates the principle of trust'.

Commentators noted that this ruling was the fourth time that one of the government's key austerity measures had been blocked by the Constitutional Court.

ESO: Background information: Statement by the EC, ECB and IMF on the Tenth Review mission to Portugal http://www.europeansources.info/record/memo-statement-by-the-ec-ecb-and-imf-on-the-tenth-review-mission-to-portugal/

ESO: Background information: Portugal court rules against civil servant sacking plan http://www.europeansources.info/record/portugal-court-rules-against-civil-servant-sacking-plan/

Portugal: Constitutional Court / Tribunal Constitucional: Press Release, 19.12.13: Acórdão nº 862/2013 http://www.tribunalconstitucional.pt/tc/imprensa02-bd2495.html

Diário de Notícias, 20.12.13: Portugal must act quickly after judges' veto (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE135673-Portugal-must-act-quickly-after-judges-veto

Council of the European Union: Press Release, 20.12.13: Statement by the Eurogroup President - Recent ruling of Portugal's Constitutional Court http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/140273.pdf

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