Portugal cutback: Court rejects austerity measures
The judges also rejected a five-percent levy on unemployment benefits and a six percent levy on health payouts.
LISBON:
Portugal’s constitutional court has rejected austerity measures included in Lisbon’s 2014 budget as part of the centre-right government’s ongoing cutbacks after exiting an international bailout two weeks ago. The country’s highest court rejected three out of four measures, which have been opposed by the leftist opposition party, including wage cuts for public employees of more than €650 ($900). The judges also rejected a five-percent levy on unemployment benefits and a six percent levy on health payouts, along with controversial cuts to widows’ pensions. The court did, however, approve a measure to reduce supplementary pension’s payouts in the public enterprise sector. Antonio Jose Seguro, secretary general of the main opposition Socialist party, welcomed the ruling and said called for the intervention of President Anibal Cavaco Silva.
Published in The Express Tribune, June 1st, 2014.
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