Portugal received a 78 billion euro rescue in 2011 after overspending.
Zee Media Bureau
Lisbon: Portugal's Prime Minister, Pedro Passo Coelho has said that the country will lay off government workers and hike the retirement age to avoid the threat of needing another bailout.
The PM in a prime-time televised address to the nation announced that the government will lay off around 30,000 workers and raise the retirement age to 66 from 65.
Portugal received a 78 billion euro rescue in 2011 after overspending, heavy debts and weak growth left it close to bankruptcy amid the eurozone’s financial crisis.
Passos Coelho said he wants to give a full state pension to workers only when they reach 66; negotiate early retirement deals with government workers to get his target of 30,000 fewer staff; and increase the working hours of government employees to 40 hours from 35, the same as the private sector.
With Agency Inputs