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Portugal's Constitutional Court rules some austerity cuts are unlawful.


darkknight

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Mar 6, 2009
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Portuguese court deems some budget cuts unlawful - RTÉ News

The ruling may deny the government about €1.4bn of predicted revenue.

The court's decision today delivers a setback to the austerity strategy agreed between the government and foreign creditors.

Portugal got a loan of €78bn in a bailout two years ago.

The 13 judges said in a statement that certain budget measures were unconstitutional.

The measures included the cutting of holiday pay for government workers and pensioners.

Other measures deemed unconstitutional were the reduction in unemployment and sickness benefit.

Among the reasons for the decision were that the measures neglected guarantees of equality.

Private sector workers are not subject to the measures.

The government made no immediate comment but has scheduled a Cabinet meeting for tomorrow.

Good to know at least some countries have Constitutional protections that mean something!
 

drummed

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Get someone who can spell to correct the title please.
 

Radix

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Presumably the fire fighters will still get steak?

:)
 
F

FunkyMonkey

+1 on the judgement.

I imagine the Portuguese government, along with Michael Noonan and other EZ Finance ministers, will rush to find some way around the Constitution and the Court's judgement in an effort to please creditors.

Laws, it is becoming increasingly clear, are for the little people.
 

drummed

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What drummed means, in his own inimitable way, is it should be "has ruled"...

And they call me a pedant! :roll:
How do you know me so well after barely a month? Have we met before?
 

darkknight

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What drummed means, in his own inimitable way, is it should be "has ruled"...
If that's what he means, he is incorrect.

Several formulations would be grammatically correct (though he seemed upset by some non-existent spelling issue), including the one employed in the thread title.
 

Sync

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And the impact of the ruling: BBC News - Portugal PM outlines new budget cuts to avoid bailout

Pedro Passos Coelho said social security, health, education and public enterprises would have to be cut.

This would allow the country to avoid a second eurozone bailout, he said.

In a statement to the nation on Sunday evening, the PM repeatedly used the phrase "national emergency" to describe Portugal's situation.

Since tax increases were out of the question after the unprecedented increases already in the budget, he said, the only option was to cut back on other public services.
The opposition are calling for the govt to quit but it's hard to see that happening. They were only voted in during 2011 and have 132 seats, 17 more than the minimum to govern.

While the figures have parallels with Ireland, with the SDP taking 108 of those seats and the smaller People's Party with 24, both the governing parties are right wing, so it's unlikely that they'll have issues with breakaways.
 
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