Portuguese Prime Minister Antonio Costa threatened to resign on Friday after his...
LISBON - Portuguese Prime Minister Antonio Costa threatened to resign on Friday after his leftist allies abandoned the government in a preliminary parliamentary vote that could undermine efforts to balance the budget by raising teachers’ salaries retroactively.
A key concern by the government is that paying such retroactive salary hikes to teachers could lead to other civil servants asking for the same thing, leading to growing pressure on the budget. “We cannot be accomplices to spoiling everything that cost Portuguese so much hard work,” Costa said, arguing that the measure would compromise the path of budget consolidation that helped Portugal win back investor confidence and leave its 2011-14 debt crisis behind.
Opinion polls suggest the Socialists, whose management of the economic turnaround has been a hallmark of their four years in office, are likely to win the election but may be just short of a majority, meaning they would again need allies. Should the flare-up develop into a full-blown crisis, the president could also intervene - exploring various options including having the Socialists withdraw their original pay proposal covering less than three years of frozen hikes on which parliament based its motion.
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