Influentual former Finance Minister for Portugal’s Social Democrats Miquel Cadilhe has backed approval of the government’s 2011 budget, if certain conditions are met. In an opinion piece for daily newspaper Publico he said he would support passage of the budget bill if the government adjusted its VAT and spending plans.
Specifically he called for the government to make its planned two point VAT hike temporary for 2011 alone. He also called on the government to commit to additional spending cuts next year which were at least equal to the effect of the VAT hike.
The PSD has said it will decide its stance on the budget at a meeting later today.
