| Author (Person) | Fox, Benjamin |
|---|---|
| Series Title | EUObserver |
| Series Details | 02.06.14 |
| Publication Date | 02/06/2014 |
| Content Type | News |
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Portugal’s supreme court threw out on the 30 May 2014 cuts to welfare and public sector pay in a further challenge to Pedro Passos Coelho’s government. In a ruling announced on the 30 May 2014, the court stated that public sector pay cuts worth between 2 and 12%, as well as cuts to pensions and welfare benefits were unconstitutional. The decision was set to cost the Portuguese government around €700 million. The move is the latest in a series of court rulings deeming planned austerity measures to be unconstitutional that have challenged the centre-right government of Pedro Coelho since Portugal was forced to take emergency loans in 2011. As with previous rulings, however, it left the government needing to propose alternative spending cuts or tax rises to make up the lost revenue. As a result, the conclusion of Portugal's €78 billion EU bailout programme hit a last minute snag after the EU and the International Monetary Fund (IMF) suspended the country's final €2.6 billion loan. |
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| Source Link | http://euobserver.com/news/124434 |
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| Countries / Regions | Portugal |
