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Portugal aims to cut 30,000 civil service jobs | Portugal aims to cut 30,000 civil service jobs |
(about 1 hour later) | |
Portugal is planning to cut 30,000 civil service jobs and to raise the retirement age by one year to 66 as it tries to meet the terms of a bailout. | Portugal is planning to cut 30,000 civil service jobs and to raise the retirement age by one year to 66 as it tries to meet the terms of a bailout. |
Prime Minister Pedro Passos Coelho said civil servants would also be required to work 40 hours a week instead of 35. | Prime Minister Pedro Passos Coelho said civil servants would also be required to work 40 hours a week instead of 35. |
The proposals, which would be applied mostly from next year, would save 4.8bn euros (£4bn) over three years, he said. | The proposals, which would be applied mostly from next year, would save 4.8bn euros (£4bn) over three years, he said. |
Austerity measures have proved deeply unpopular and have triggered large protests. | |
"With these measures, our European partners cannot doubt our commitment" to the bailout, Mr Coelho said in an address to the nation late on Friday. | |
"To hesitate now would harm the credibility that we have already won back," he added. | |
Portugal received a 78bn euro bailout from the European Union, the European Central Bank and the International Monetary Fund in 2011. | Portugal received a 78bn euro bailout from the European Union, the European Central Bank and the International Monetary Fund in 2011. |
Unemployment stands at nearly 18% - a record high - and the economy is expected to shrink for a third consecutive year in 2013. | |
Last month, the Portuguese Constitutional Court struck down more than 1bn euros (£847m; $1.3bn) of proposed cuts, which included the suspension of holiday bonuses for public sector workers and pensioners. | Last month, the Portuguese Constitutional Court struck down more than 1bn euros (£847m; $1.3bn) of proposed cuts, which included the suspension of holiday bonuses for public sector workers and pensioners. |
That forced the centre-right government to look elsewhere for savings - though it has ruled out raising taxes. | |
"We will not raise taxes to correct the budgetary problem resulting from the Constitutional Court's decision," Mr Coelho said. | |
"The way must be through the structural reduction of public spending." | |
Portugal's main Socialist opposition party has accused Mr Coelho of inflicting excessive austerity on Portugal in pursuit of an ideologically driven programme. |
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