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Portugal's supreme court has posed its latest challenge to the government's planned austerity measures (Photo: David Baxendale)

Portuguese court throws out 'unconstitutional' pay and pension cuts

Portugal’s supreme court threw out cuts to welfare and public sector pay in the latest challenge to Pedro Coelho’s government.

In a ruling announced on Friday night (30 May), the court stated that public sector pay cuts worth between 2 and 12 percent, as well as cuts to pensions and welfare benefits were unconstitutional.

The court ruling will not be applied retroactively to cuts which were applied in January, but will come into immediate effect.

"Budget execution has reache...

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Portugal's supreme court has posed its latest challenge to the government's planned austerity measures (Photo: David Baxendale)

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