Crisis-hit Portugal launches more labor reforms

[Joanne98]

Portugal's government has unveiled proposals for labor market reforms aimed at easing a financial crisis that has contributed to the market turmoil destabilizing the wider eurozone.

The proposals include placing new limits on compensation payable to workers who lose their job and allowing temporary reductions in working hours at companies in difficulty. The measures seek to facilitate company restructuring.

In other measures announced Wednesday, the Finance Ministry will set up teams to monitor whether the government is abiding by quarterly spending targets.

Portugal's high debt and low growth have made it one of the frailest members of the 16-nation eurozone. But the government insists it doesn't need or want a financial rescue of the kind provided to Greece and Ireland, even though its borrowing costs have soared.

http://www.businessweek.com/ap/financialnews/D9K4EVLG1.htm

[xchrom]

1. Don't tell Obama about this.

It'll be his next 'great compromise'.