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Portugal's FinMin accuses Socialists of threatening pensions system

Xinhua, May 28, 2015 Adjust font size:

Portugal's Minister of Finance Maria Luis Albuquerque on Wednesday accused the Socialist Party of threatening to create a "financial black hole" worth 12.4 billion euros (13.49 billion U.S. dollars) in the country's pension system.

"The Socialist Party aims to maintain uncertainty regarding the sustainability of social security until after the legislative elections," Albuquerque said at parliament on Wednesday, according to Portuguese Lusa News Agency.

Albuquerque also criticized the Socialist's proposal to decrease single social tax by four percentage points for both employers and employees, and its Secretary General Antonio Costa for wanting to transfer around 1.4 million euros to the Social Security Financial Stabilization Fund for urban regeneration.

The finance minister said decreasing single social tax would lead to a financial black whole of 11 billion euros in the social security system, as well as 1.4 billion euros intended for urban regeneration.

Alburquerque announced over the weekend that the country will have to make further cuts in pensions of around 600 million euros in 2016.

These cuts are part of the country's efforts to reach the deficit targets set under its 78 billion euros bailout program signed in May 2011 with the troika of international lenders -- the European Commission, International Monetary Fund and European Central Bank, which was successfully completed last year. Endit