The centre-right government in Portugal has backed down on a tax hike to help tackle its debt mountain.
The increase had been part of plans to meet the conditions of the country's €78 billion euro rescue fund.
But a week after huge anti-austerity street protests the government agreed to look for alternatives to the it planned social security contribution rise of 11% to 18%.
Portugal had been given an extra year to reduce its deficit following the latest quarterly review by international lenders overseeing its bailout.