EU warns Portugal to stick to fiscal targets after court ruling

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Brussels has warned Portugal to stick to the bailout austerity measures agreed in 2011 or risk losing further financial hep.
The warning came following a decision by the Portuguese constitutional court to reject a set of unpopular public spending cuts aimed at reducing the country’s deficit.
In a televised speech on Sunday, Portugal’s prime minister Pedro Passos Coelho described the country’s economic situation as a ‘national emergency’ and pled to follow the terms agreed with international lenders.
Alternative cuts, he said, will need to be found to avoid a euro exit or a second eurozone loan.
For its part, the European Commission on Monday welcomed the government’s commitment to respect the bailout conditions.
Reductions to sickness leave and unemployment benefits were among the cuts that were ruled unlawful.
Portuguese President Aníbal Cavaco Silva put the country’s draft budget before the Constitutional Court, arguing that it didn’t treat citizens fairly. It included the biggest tax hikes in history.

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