Portugal braces for general strike

Nov 23, 2010, 16:10 GMT

Lisbon - Portugal was Tuesday bracing for a 24-hour general strike, which was expected to largely paralyse air traffic on Wednesday.

Unions said they expected high turnout for the strike, which is protesting government austerity measures aimed at restoring the confidence of financial markets in Portugal's debt-ridden and sluggish economy.

Public transport and airports were expected to only provide minimum services.

About 550 flights will be cancelled, the airport authority ANA said. The flights that will operate include military and emergency ones, as well as national flights to the Madeira and Azores islands.

The strike is Portugal's first general one in three and a half years, and the first called jointly by the two big trade union confederations, CGTP and UGT, in 22 years.

It will protest an austerity budget which has won preliminary approval from parliament. The budget slashes public sector wages by 5 per cent, freezes pensions, and raises value added tax from 21 to 23 per cent.

The measures seek to restore market confidence in the Portuguese economy amid concern that the country might need an international bailout similar to those requested by Greece and Ireland.

Prime Minister Jose Socrates' Socialist government wants to cut the budget deficit from an expected 7.3 per cent this year to 4.6 per cent in 2011. The deficit would then be trimmed below the EU limit of 3 per cent by 2013.

Portugal's unemployment rate climbed to a record 10.9 per cent in the third quarter.

Socrates has already faced a string of strikes and demonstrations against his liberalizing economic reforms.

Read more about Portugal Labour