Portugal makes cuts and raises taxes
Portugal raised taxes and cut politicians' pay in a fresh effort to allay market fears about its high level of debt.
Prime Minister Jose Socrates announced that income tax will rise between 1% and 1.5% and VAT will increase to 21% from 20%.
Corporate tax will increase 2.5% for companies reporting annual profits of more than two million euros.
The salaries of politicians and public company bosses, meanwhile, will be cut by 5%.
Mr Socrates said the measures will remain in place through 2011, by which time he expects the budget deficit to be 4.6%. Last year it stood at 9.4%.