The Government in Portugal Resigned after Asuterity Budget Rejected by its Parliament

Prime Minister of Portugal, Jose Socrates, on 23 March 2011 resigned after the Portuguese Parliament rejected the austerity budget presented by its government which included cuts in spending and rise in taxes. It was the fourth time the austerity measures were introduced within the time span of a year. Jose Socrates belonged to the centre-left Socialist Party. It is likely to result into Portugal getting a bailout similar to the rescue package Greece and the Ireland given in the year 2010.   

  
It is important to note that Eurozone leaders held a two-day summit in Brussels on 24-25 March 2011 to give a final touch to eurozone debt crisis plan. Elections will be held in Portugal in a few months’ time. 

    
The austerity measures introduced by the Portuguese government included cuts to health care, infrastructure investments and social welfare spending amounting to 0.8 percent of GDP.   The government also had planned to freeze the pensions to deal with the financial crisis.