24 Sep 2012

Portugal looks for alternative to tax rises

11:20 am on 24 September 2012

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.