Portugal PM Jose Socrates resigns after austerity budget rejected

Portugal PM Jose Socrates resigns after austerity budget rejected

2011-03-24 06:02:18 GMT+7 (ICT)

LISBON, PORTUGAL (BNO NEWS) -- Portugal's Prime Minister Jose Socrates on Wednesday announced his resignation following the rejection of his austerity budget.

Socrates presented his resignation to Portuguese President Anibal Cavaco Silva after the Stability and Growth Program 2011-2014 was rejected. Opposition parties refused to support the program, and Portugal is now likely to seek a bailout as Greece and Ireland.

"For several months I have fought for something I believe is absolutely fundamental: protect the country's need for a foreign aid program so that Portugal would not be in the situation as Greece and Ireland," said Socrates in a previous statement.

The former Prime Minister added that he had always been aware of the extreme negative consequences of a foreign aid program," saying that the current political crisis was "avoidable with enough spirit of dialogue."

The austerity budget was presented one day before European Union leaders begin a two-day summit in Brussels to decide on the 17-nation eurozone economic and financial crisis.

"I feel I am doing my duty," Socrates said, underlining that foreign aid would have negative consequences for Portugal's image, prestige, and national reputation, as well as its position in international markets.

Next month, Portugal will be facing a 4.23 billion euros ($5.96 billion) debt repayments, but the country has an estimated cash reserve of 4 billion euros.

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