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The Boston Globe

Business

Portuguese leader warns of new spending cuts

LISBON — Despite two years of corrosive austerity measures since it needed an international financial rescue, Portugal’s prime minister told his country Sunday to brace for even harder times after a court ruling forced his government to find more savings through steep spending cuts.

Pedro Passos Coelho said in a somber televised address to the nation that his center-right government must slash public services because of a Constitutional Court decision to disallow some of its latest tax hikes.

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