Belt Tightening: Portugal unveils spending cuts

Portugal PM says that the government aimed to slash 30,000 public sector jobs as part of a sweeping package.

LISBON: Portugal’s prime minister said late Friday that the government aimed to slash 30,000 public sector jobs as part of a sweeping package of spending cuts to satisfy international creditors.

In a speech to the nation, Pedro Passos Coelho also said that the full pension age would be pushed back from 65 to 66 years old and civil servants would be expected to work 40 hours per week instead of 35.

The measures were announced in order to keep the small debt-hit Euro-zone member eligible for another slice of its much-needed bailout.

Coelho was unveiling the contents of the centre-right government’s new “medium-term programme”, under which Portugal is hoping to save a total of €6 billion euros ($7.9 billion) to 2016.

Published in The Express Tribune, May 5^th, 2013.

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