Submitted by Fox First at Ten on October 18th
LISBON, Portugal (AP) - The junior party in bailed-out Portugal's coalition government has ended days of political tension by endorsing a plan for severe tax increases next year, ensuring the new austerity measures are approved in Parliament.
Senior officials in the center-right Popular Party had expressed misgivings about the finance ministry's 2013 draft budget, which sparked a public outcry.
Their reluctance to back the proposal threatened to bring down the 16-month-old government.
Finance Minister Vitor Gaspar says the extra tax revenue is needed to meet the deficit targets stipulated in Portugal's €78 billion ($102 billion) bailout agreement last year.
Breaking a three-day public silence, Popular Party leader Paulo Portas said in a written statement Thursday his party will approve the budget plan because of the country's "extremely delicate economic and social circumstances."
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
