Portugal's new government is implementing a new round of savings in the next month and has a tough task ahead as it slashes spending to pay for its rescue package.

ALMOST everyone in Portugal is on board and backing a programme to stabilise the country’s spending.

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The Portuguese population seems to understand and accept the harsh financial measures being imposed by the new coalition government, formed after the elections on June 5. The most unpopular move so far has been the decision to cut Christmas bonuses by half which will raise about Euros 800million.

But these same people were marching and demonstrating in the st...

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The austerity programme, which includes increased taxes and spending cuts, has the support of the two coalition parties running the country
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