Portuguese gov't slams Socialists' plan before general elections

Portuguese Deputy Prime Minister Paulo Portas on Wednesday accused the main opposition Socialist Party of presenting a macroeconomic plan that could plunge the country into another bailout package.

"Your plan of promises doesn't only mean a risk of delusion, it also contains the risk of turning into another memorandum of understanding, in which each promise transforms into another," Portas said at the parliament.

"The troika took us one time and if you are given the mandate, the troika will take us a second time," he added, referring to the 78 billion euros (about 83.5 billion U.S. dollars) bailout package the country signed with international lenders in May 2011.

The Socialist Party, which is leading opinion polls before the general elections due between September and October this year, revealed a range of proposals on Tuesday which it will advance if it wins the general elections.

The country's main opposition said it will comply to cutting budget deficits, and will create more employment and boost salaries.

According to Socialist economists, the country's budget deficit will fall to 0.9 percent in 2019.

The Socialists propose cuts in social security tax for employees from 11 percent to 9.5 percent in 2016, 8 percent in 2017 and 7 percent in 2018.

The plan also envisions cutting employers' social security contributions by four percentage points, and restaurants will see value-added tax (VAT) cut to 13 percent next year from the current 23 percent.

However, the center-right ruling coalition claims the measures suggested by the Socialists could aggravate the country's deficit by 1.7 billion euros (1.82 billion U.S. dollars). Endi