1000s stage demo protesting austerity measures in Portugal

Thousands of protesters have staged a demonstration against harsh austerity measures in Portugal as the country’ parliament gave final approval to a 2013 budget, which imposes more spending cuts on the debt-stricken people.

A few thousand people gathered outside the Portuguese parliament in Lisbon to protest against the parliament’s approval of a budget that aims to cut the budget deficit to 4.5 percent of the country’s gross domestic product in 2013.

“We are talking the basics, here. Many children in Portugal go hungry. We are seeing the greatest social decline ever. So, for that reason, this budget is a budget against the people,” one of the protesters said.

“The government is aware of the difficulties we have to overcome,” Finance Minister Vitor Gaspar told parliament before the vote.

All opposition parties voted against the bill, which aims at saving 5.3 billion euros ($6.9 billion).

“The country needs a budget to get out of the crisis. Instead it will get a budget that deepens the crisis,” Socialist leader Antonio Jose Seguro told parliament, adding, “These tax increases represent a fiscal nuclear bomb for the Portuguese.”

Battered by the global financial downturn, the Portuguese economy fell into a recession, which compelled the country to negotiate with the International Monetary Fund for a bailout loan in 2011.

Spain, Greece, Italy, Cyprus, and Portugal are all in recession, and all five are receiving financial assistance from European bailout funds.

The Portuguese government says the new budget will help Portugal meet the conditions imposed by its creditors, the European Central Bank, the IMF, and the European Union, which are keeping an eye on Portugal’s implementation of spending cuts and reforms required in return for the 78-billion-euro ($102 billion) rescue package the country received in 2011.