Portugal to raise retirement age, lay off 30,000 amid effort to save $6.3B over 3 years
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Portugal's prime minister says he plans to raise the retirement age to 66 from 65 and lay off some 30,000 government workers in measures that aim to save 4.8 billion euros ($6.3 billion) over the next three years.
Pedro Passos Coelho said in a televised address to the nation Friday that the new measures are needed to ensure Portugal won't require another bailout.
Portugal got 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.
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Many people blame the government's spending cuts and tax hikes for a recession that is forecast to continue for a third straight year in 2013.
Unemployment is at 17.5 percent, and the government predicts it will reach 18.5 percent next year.