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11/13/12

Portugal: Merkel hails Portugal's austerity efforts

Anti-austerity protesters had gathered outside Portugal's presidential palace to greet German Chancellor Angela Merkel with chants and placards telling her she is not welcome.

Merkel, who landed shortly before midday (12:00 GMT) on Monday, was set to renew her endorsement of spending cuts and tax increases being pushed through by fellow conservative Prime Minister Pedro Passos Coelho to meet the terms of last year's German-backed European rescue deal for the deeply indebted Portuguese state.

Her six-hour visit also seemed intended to reassure German voters that the bailout money they lent is being well used.

Following her meeting with Cavaco, the German Chancellor headed to meet premier Passos Coelho before addressing business chiefs at a conference.

In a startling example of how a consensus on deficit-cutting has broken down within the Portuguese establishment, a major business newspaper, Diario Economico, ran an opinion piece on Monday condemning Merkel for pushing the Portuguese government to impose austerity measures in the depth of a recession.

The German leader, however, has insisted that only reforms to cut the public deficit can restore growth and she and her ministers have cited Portugal as a model for other debtors.

Read more: Merkel hails Portugal's austerity efforts - Europe - Al Jazeera English

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