Portuguese lawmakers agree to redo new law favoring them

Markets Associated Press

Portugal's political parties say they will review a decision to award themselves a broad tax rebate and scrap limits on the private funds they can raise after the country's president vetoed the new law.

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President Marcelo Rebelo de Sousa blocked the legislation, saying lawmakers didn't explain why the change was needed and did not create enough safeguards to clarify the sources of private donations.

Traditionally in Portugal, parties operate on mostly public funds to avoid undue influence from private individuals or corporations. They can accept some private funds but the amount is indexed and limited.

Carlos Cesar, parliamentary leader of the governing Socialist Party, acknowledged that the change had been poorly explained.

Party leaders in the Republican Assembly, or parliament, agreed Thursday to review the law in mid-February.