Kathleen Brooks
Media playback is unsupported on your device
Video

Portugal to unveil further spending cuts

Portugal government is to unveil another 4.9bn euros worth of spending cuts and tax rises when it presents its budget later.

Portugal must get its deficit below the European Union's target of 3% of GDP.

It was given one more year to reduce its deficit, after the latest quarterly review by international lenders of the EU, IMF and European Central Bank overseeing its 78bn-euro (£65bn) eurozone bailout.

As in Spain and Greece, Portugal has seen huge street protests against the austerity cuts that are needed to meet the demands of the bailout.

Kathleen Brooks, research director from currency traders Forex.com, told BBC News that the government had to "walk a fine line" between meeting the EU's bailout criteria, and causing so much unrest that they lose their position of power.

  • 15 Oct 2012
Go to next video: Pressure over Portugal austerity plan