Portugal braced for ‘fiscal earthquake’

Feature discusses the grim economic prospects for Portugal in 2013, in particular the substantial income tax increases that came into force on the 1 January 2013.

Portugal's Finance Minister, Vitor Gaspar, admitted the tax rises were 'enormous', but were 'another determined step toward recovery'.

The Portuguese president said in his New Year message that he would send the controversial budget to the Constitutional Court. Aníbal Cavaco Silva said the budget didn't treat citizens fairly, and hit some of them worse than others.

ESO: Background information: Portuguese PM keeps faith with austerity http://www.europeansources.info/record/portuguese-pm-keeps-faith-with-austerity/

BBC News, 31.12.12: Portugal set for major tax rises as 2013 budget hits http://www.bbc.co.uk/news/world-europe-20875752

Reuters, 31.12.12: Portugal president signs 2013 budget into law: TSF http://www.reuters.com/article/2012/12/31/us-portugal-budget-idUSBRE8BU05P20121231

BBC News, 02.01.13: Portuguese budget sent to court to assess its fairness http://www.bbc.co.uk/news/business-20886000

Euronews, 02.01.13: Portugal’s highest court to consider 2013 budget http://www.euronews.com/2013/01/02/portugal-s-highest-court-to-consider-2013-budget/

EurActiv, 02.01.13: Portuguese President sends his country’s budget to court http://www.euractiv.com/euro-finance/portuguese-president-sends-count-news-516838

EUObserver, 03.01.13: Portugal seeks court inquiry into 'unjust' debt deal http://euobserver.com/news/118634

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