Despite the controversial decision by Constitutional Court judges to veto key Government spending cuts for next year’s state budget, Finance Minister Maria Luís Albuquerque is forging ahead as planned. Her ministry has warned all departments to tighten their belts even further. Famous for having said “there is no Plan B”, Albuquerque has well and truly stuck her ground, announcing that all Government accounting is based on pre-veto salary levels. In other words, the number of civil servants facing the axe next year has now doubled, writes Correio da Manhã. As many as 40,000 workers could be handed the Portuguese equivalent of little pink slips, and there does not seem to be anything unions can do to stop it. Indeed, CM claims that unions fear the Government will be “adjusting pay tables and supplements” as well.
For the time being therefore, in financial terms – nothing has changed. The government is still aiming to reduce its deficit to 4% of GDP this year and to 2.5% in 2015.
Meantime, the Constitutional Court has still to pass judgement on the Government’s Extraordinary Solidarity Contribution put forward with other measures in a bid to shave a further €186 million from state spending next year.
