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Portugal: gov't, opposition fail deal on austerity

Portugal: gov't, opposition fail deal on austerity

Portugal's minority government and main opposition party have failed to agree on austerity measures designed to restore confidence in the country's debt-laden economy.
Portugal, like other eurozone countries Greece, Ireland and Spain, is battling a government debt crisis that has threatened to ruin its economy.
The center-left Socialist government wants to introduce steep tax hikes and spending cuts in next year's state budget but doesn't have enough votes in Parliament to enact the measures without the support of other parties.
After five days of negotiations the Social Democratic Party announced Wednesday it didn't agree with some of the proposed tax increases.
However, it hasn't said whether it will allow the state budget to pass in next week's vote by abstaining.