Portugal vows to reduce public spending

[Gruffalo]

Portuguese Prime Minister Jose Socrates has announced plans to delay some major public projects to reduce the country's public deficit this year.

The Portuguese government has decided to reduce the deficit this year to 7.3% of GDP.

Portugal is struggling to fend off comparisons to Greece.

http://www.rte.ie/news/2010/0508/portugal.html

It looks like Portugal is succumbing to external pressure to take action on its problems. We will probably hear a few similar announcements from other countries over the next week or two as the Eurozone struggles to stabilise the currency.

[tea drinker]

Sounds like a bad move. The public servants here told us that reducing their pay and removing this money from they economy was a very bad idea.
They always looked out for us in the past, and kept the political class under control.

/rant off