Portugal introduced tough new austerity measures including a “crisis tax” on wages and big companies yesterday as part of a plan to cut its budget deficit by more than half in less than two years.
The extra spending cuts and tax rises announced by José Sócrates, the Portuguese prime minister, followed similar moves by Spain, Greece and Ireland.
They are part of a push by members of the european single currency to convince financial markets that they are tackling budget problems following this week’s €750bn emergency support plan for the eurozone.
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