Portugal approves 2011 budget with tough austerity measures

Portugal's parliament Friday approved the country's 2011 budget, and Prime Minister José Sócrates expressed hope that its passage would help calm euro-zone debt markets roiled by Ireland's financial crisis.

The government faced pressure to make some last minute changes. One that provoked strong opposition from some opposition parties was an amendment that would have allowed the government to make salary-cut exceptions to some government-owned companies, which could include Caixa Geral de Depositos, one of the country's largest banks. Finance Minister Fernando Teixeira dos Santos Friday said there would be no exceptions to the salary cuts.

The budget plan continues the task of reducing the country's deficit from 9.3% of gross domestic product in 2009 to 7.3% of GDP this year and to below 3% of GDP by 2013.