Portugal's parliament
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Portugal passes austerity budget to cut debt

Portugal has become the latest country to fall in to line with other debt-laden members of the euro.

Its parliament has passed an austerity budget in an attempt to reduce its deficit and reassure financial markets.

It will cut public spending and raise VAT, measures that have proved very unpopular with voters.

The BBC's Wendy Urquhart reports.

  • 04 Nov 2010
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