Reuters
Published Oct 27, 2021 01:39PM ET
LISBON (Reuters) - Portugal's parliament rejected the minority Socialist government's 2022 budget bill on Wednesday as the hard left sided with the conservative opposition, in a move likely to trigger snap elections in coming months.
Lawmakers voted 117-108 with 5 abstentions to throw out the bill that envisaged income tax cuts for the middle class and increased public investment to spur post-pandemic recovery, while reducing the deficit to 3.2% of gross domestic product from 4.3% in 2021.
Prime Minister Antonio Costa's hard-left former allies, the Communists and Left Bloc, had demanded more benefits and protections for workers, improvements in the social security system and more public investment in the health service, which they say Costa ignored as he is too focused on deficit cuts.
Costa said he could not accept damaging hard-earned international credibility in a country with one of the heaviest public debt burdens in Europe and which was subject to painful austerity in 2011-14 under an international bailout.
President Marcelo Rebelo de Sousa warned on Monday that without a budget, which relies heavily on EU pandemic recovery funds, he would have no alternative but to dissolve parliament and call snap elections two years ahead of schedule.
Costa, who presided over six years of relative stability with solid economic growth and a small budget surplus before the pandemic struck last year, has ruled out resigning and said he would lead his party in any election campaign.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.