Saturday, March 12, 2011

Portugal cuts deeper as EU nations hold crisis meeting - Telegraph

The yield on Portuguese five-year debt hit a new high of 7.99pc amid mounting speculation that it also rose, making it more expensive for them to borrow. The euro has been falling against the dollar on growing doubts that leaders can bridge differences on how to solve the region's fiscal woes In a last-ditch attempt to convince investors its finances are sustainable, on Friday Portugal announced new spending cuts worth 0.8pc of GDP this year and structural reforms to push its deficit down faster. The measures include cuts in spending on social welfare and infrastructure. Changes to labour market rules are also planned, including a reduction in redundancy payments European Monetary Affairs Commissioner Olli Rehn welcomed the "clear and important" steps.

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