Portugal PM calls for deep state reform to beat crisis


Portugal's prime minister said on Tuesday the country will only overcome its crisis by adding a profound reform of the state to current budget cuts, and called on the main opposition party, employers and labor unions to collaborate.

Presenting his draft 2013 budget that imposes sweeping tax hikes, Pedro Passos Coelho said: "Our problem is not just budgetary. There is a consensus in the country that we need to have a general reform of the state if we want to solve the crisis."

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He said earlier the government was seeking support from the main opposition Socialists for 4 billion euros of new spending cuts that may need changes to the constitution to push through. [ID:nL5E8LU3MY] (Reporting By Andrei Khalip)