Portugal stands firm on cuts as strikes fail to make an impact

PORTUGAL'S government refused to back down from its austerity plan yesterday, despite a strike by civil servants that saw some school classes cancelled, medical offices closed and rubbish left uncollected.

The strike over a planned pay freeze was supposed to be the biggest in four years, but turnout was reported to be limited.

It was the latest test of the minority Socialist government's commitment to reducing Portugal's debt burden, which has unsettled financial markets. Gonalo Castilho dos Santos, the civil service secretary, said the government would not budge from its austerity plan and urged workers to accept the need for spending cuts.

"(Portugal] cannot sacrifice the common good for the sake of individual well-being," he said.

He said central government was running close to normal, saying "most of the country's civil servants endorsed our message about realism and responsibility".

Portugal's budget deficit is projected to have hit a record 9.3 per cent of gross domestic product last year – way above the 3 per cent allowed in the 16 countries using the euro.