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Portugal PM Calls for Deeper Spending Cuts

Portugal's prime minister says his debt-ridden country must make deeper spending cuts to meet the requirements of its international bailout after a court ruling overturned some of its austerity measures.

Pedro Passos Coelho told his countrymen in a televised speech Sunday night that the court decision Friday could pose "serious obstacles and risks" for the country. But he ruled out more tax increases to meet the terms of its $101 billion bailout two years ago.

Analysts say the court ruling could cost Portugal up to $1.7 billion in savings it had planned.

The court rejected four austerity measures, ruling that the government could not cut holiday bonuses for pensioners and government workers or reduce sick leave and jobless benefits.

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