EU calls on Portugal to stick to bailout conditions

Following the decision of the Portuguese court on the 2013 state budget, the European Commission on Monday welcomed the Portuguese Government's confirmation of its commitment to the adjustment programme, including its fiscal targets and timeline. "Any departure from the programme's objectives, or their re-negotiation, would in fact neutralise the efforts already made and achieved by the Portuguese citizens," said the EU's executive body in a statement. The Portuguese Constitutional Court on Friday rejected austerity measures from this year's budget. The court ruled that some of the pay cuts in the budget were illegal, denying the government about 1.4 billion euros in revenue it said were needed to meet the terms of its existing bailout. Portugal's Prime Minister Passos Coelho yesterday said the court ruling means that his government has to make deep spending cuts. The EU lent Portugal 78 billion euros in a bailout two years ago to help the country cope with the economic crisis.