06 April 2013

PORTUGAL/ ECB / IMF : 09 April UPDATE: EC Withholds 2 Billion Euros Tranche After High Court Strikes Down Parts Of Austerity Budget.

     New facts in italics.
     In Lisboa...the Constitutional Court had ruled against 4 of 9 contested measures in the nation's 2013 austerity budget.
     It meant the loss of 1.3 billion euros in savings...required by the Troika's $101 billion bailout in 2011.
     Center right PM Coelhos must now find new money sources...or renegotiate with the fiscally demanding Troika.
    Some economists say that the shortfall is manageable.
    Others expect it will be necessary to cut wages and pensions...highly sensitive areas.
    The EC announced it is withholding a 2 billion euros tranche due this month...until Lisboa unearths 1.3 billion euros in new spending cuts...that the court struck down.