The Portuguese parliament Wednesday debated the 2011 budget, which has been revised to reflect bailout terms as the new conservative government struggles to bring the budget deficit under control, dpa reported. Far-left representatives accused the government of defending the interests of powerful bankers, while Prime Minister Pedro Passos Coelho's Social Democratic Party (PSD) and the opposition Socialists defended the bailout as guaranteeing the country's financial stability. The European Union and the International Monetary Fund (IMF) agreed in May to lend Lisbon 78 billion euros (112 billion dollars), making it the third eurozone country to be rescued after Greece and Ireland. A delegation from the EU, IMF and the European Central Bank is currently in Lisbon to carry out a first review of Portugal's efforts to meet the bailout terms. Passos Coelho's government, which took office in June, has pledged austerity policies and structural reforms going even further than the bailout conditions in order to restore the country's credibility. Under the bailout terms, the state will guarantee up to 35 billion euros in debt issuance by banks, and banks can use up to 12 billion euros from the bailout amount to meet stricter capital requirements. The government has also pledged privatizations, tax hikes, spending cuts and measures to make the labour market more flexible. It has announced that it will eliminate its "golden share" in large public companies and cut workers' Christmas bonuses. Public transport fares have risen considerably. -- SPA
