Portugal’s bail-out package totals 78 billion euros

4 May 2011

Lisbon, Portugal, 4 May – The bail-out package for Portugal will total 78 billion euros, a government source told Portuguese news agency Lusa Tuesday in Lisbon.

The programme to reduce the budget deficit will be in place for three years and for this year projects it will drop to 5.9 percent of gross domestic product (GDP), to 4.5 percent of GDP in 2012 and 3 percent of GDP in 2013.

In a speech to the country, caretaker Prime Minister José Sócrates said, in relation to labour market measures, that there would be no lay offs in the public sector or reduction of the minimum wage or a rise in the legal age for retirement.

The prime minister also addressed speculation, denying that the Social Security system would be privatised or that any kind of ceiling would be set and added that financial group Caixa Geral de Depósitos would not be privatised.

However, Sócrates announced that pensions of over 1,500 euros per month would be cut and that minimum pensions would be updated. (macauhub)