Portuguese PM says to futher cut public spending to meet bailout requirement

　　Portuguese Prime Minister Pedro Passos Coelho said Sunday that his government will not increase taxes but will further reduce public spending to meet bailout requirement.

　　In a 20-minute statement, Passos Coelho said that Friday's Constitutional Court has "compromised Portugal's return to the markets and its ability to renegotiate interest on its loans as well as Portugal's image abroad, something that was built up successfully over the past 22 months."

　　The prime minister assured, "The government will not accept any further increase in taxes, which seems to be the solution that the Constitutional Court favors."

　　Tax increases "would severely jeopardize our chances of a timely recovery of the economy and job creation," he added.

　　Two days after the Constitutional Court ruled against cutting public sector pay in the 2013 state budget, the head of the Portuguese government stressed that he will not raise taxes to offset the Constitutional Court ruling but he will accelerate the process of reducing expenditure.

　　"We are left with the alternative of accelerating some aspects in public spending. To compensate for this imbalance, we have to put into practice this year measures to reduce spending in social security, health, education and public companies," he said, revealing that over the coming days, the ministries will begin to shave off operating costs.

　　"The country can not expect Europe to solve their problems," said the prime minister, who made assurances that he will "respect and comply with the decisions of the Constitutional Court but disagrees with the interpretation of the law along with many other institutionalists."

　　"The court decision puts the Portuguese negotiating position in fragile footing with Europe," he said, while arguing that in "exceptional times, extraordinary action is needed, something that was not understood by the Constitutional Court."

　　The court decision "runs against the objectives of the government and will have consequences for the country, at the same time as we have serious obstacles to hurdle in 2013."

　　On Sunday, Portugal's main opposition Socialist Party leader Antonio Jose Seguro continued to call for early elections.

　　"The only solution is to call for new elections," the Socialist leader reiterated in an interview with broadcaster SIC Noticias.

　　Portugal is implementing harsh austerity measures in return for the bailout of 78 billion euros (about 101 billion U.S. dollars) from the troika comprising the European Union, the International Monetary Fund and the European Central Bank. The government's move has triggered widespread protests across the country in recent months.

　　According to official figures, Portuguese economy will contract by 2.3 percent this year and its unemployment rate is expected to increase by 18.2 percent.

　　相关新闻：葡萄牙总理科埃略7日在总理府发表讲话称，葡政府不会继续提高税收，但将进一步加大力度削减公共支出，以满足政府与由欧盟委员会、欧洲央行和国际货币基金组织组成的“三驾马车”达成的救助条件。

　　科埃略说，由于葡宪法法院裁定政府2013年预算案中部分条款违宪，为实现政府与“三驾马车”达成的减赤目标，避免再次向其寻求国际救助，葡政府决定进一步减少在教育、卫生、社会安全和国有企业等领域的公共开支。他还说，增加税收将会对葡经济尽快复苏和创造更多就业机会产生严重的不利影响。

　　科埃略说，由于宪法法院的裁决，葡经济将面临更大困难。但他同时保证，政府将尽一切努力在与“三驾马车”的有关谈判中维护国家利益。

　　葡宪法法院5日宣布，葡政府2013年预算案中部分条款不符合宪法规定，因此，葡政府今年的财政支出预计将增加13亿欧元，财政赤字占国内生产总值的比例将达到6.3%，这将给葡政府实现今年3月与“三驾马车”达成的，到今年年底前将其财政赤字占国内生产总值的比例降至5.5%带来更大困难。

　　2011年5月，葡与“三驾马车”达成了780亿欧元援助协议。为获得援助，葡须按援助方案要求，实行财政紧缩和经济改革计划，大力削减财政赤字，降低公共债务。