Thousands rally against more cuts

Portugal's leading union CGTP called on thousands of demonstrators to march in Lisbon at the weekend.

Protest organisers said that tens of thousands had also turned out in about 20 cities across the country.

CGTP general secretary Armenio Carlos said: "We want to break with the commitments made in return for the rescue plan, break with right-wing policies, demand the resignation of the government and new elections."

Portugal was the third country, after Greece and Ireland, to fall into the eurozone's financial crisis and received a €78 billion (£67bn) loan from the European Union, European Central Bank and International Monetary Fund in May 2011.

Austerity cuts, particularly to health-care services and public education, have triggered strikes and mass street protests across the country in the last two years.

Cutbacks in public spending drove the unemployment rate to 16.9 per cent last year while the economy contracted by 3.2 per cent. The CGTP announced plans for more protests until the end of March.

Protesting pensioner Manuel Mendes said: "What's at stake here is not only the situation we are in but also democracy, so I'm here to fight against this government and this policy."

The so-called Troika - the ECB, IMF and EU - which has spearheaded the European drive to austerity and forcing working people to pay for the crisis of capitalism is expected to look again at Prime Minister Pedro Passos Coelho's economic reforms at the end of the month.