LISBON, Portugal (AP) -- The leader of bailed-out Portugal's main opposition party pressed the government Friday to ask international lenders for a one-year extension on the country's debt reduction targets.
Debt-stressed Portugal is locked into an austerity program through 2013 in return for last year's euro78 billion ($103 billion) financial rescue.
All three major parties — the governing center-right Social Democrat and Popular parties, and the main opposition center-left Socialist Party — endorsed the bailout terms.
However, the austerity measures are widely blamed for a deepening recession, with the government forecasting a 3 percent contraction this year, and a record 14 percent jobless rate.
Socialist leader Antonio Jose Seguro told Parliament that economic conditions have changed considerably since the bailout terms were agreed. He argued that austerity during an economic downturn is misguided.
"This remedy is wrong," Seguro said.
But Prime Minister Pedro Passos Coelho, who came to power seven months ago and has staked his reputation on turning around Portugal's fortunes, repeated his commitment to the bailout program.
"This government won't ask for any more money, nor more time," he told lawmakers. "This government will abide by what was agreed and started eight months ago."
1 comment