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After the Constitutional Court threw out four elements of the 2013 state budget, Portuguese PM Pedro Passos Coelho made a television address on April 7 saying the country was in a “financial emergency” but denied his government was in danger.
The government is preparing to announce a fresh round of public sector spending cuts after the Court decision on April 5, which left the administration with a shortfall of €1.3bn.
Following the Court’s ruling, the European Commission underlined that Portugal must comply with the conditions set out in its bailout programme.
Diário Económico writes that "the [Constitutional Court’s] judgement ruined the expected return to the markets and the government’s most optimistic plans for the foreseeable future."
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