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Leadership
OECD hails Portugal’s austerity measures
10.03.2010
The Organisation for Economic Co-operation and Development (OECD) has hailed the austerity measures announced by Portugal to bring its budget deficit back in line with European Commission rules, saying they will help to support the country’s growth.
The Portuguese Government released a fiscal consolidation plan earlier this week through which it aims to bring the country’s budget deficit to 2.8pc of GDP by 2013 from its current level of 9.3pc of GDP.
The measures being adopted include spending cuts, such as social-welfare cuts and a reduction in public-sector job creation, and tax rises, including the introduction of a new rate of 45pc tax rate for those earning over €150,000 annually.
The OECD said Portugal’s fiscal consolidation strategy “goes in the direction of maintaining market confidence, supporting growth and ensuring fiscal sustainability”.
“The OECD stands ready to support the Portuguese authorities in their efforts,” the Paris-based organisation added.
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