Portugal: We are headed for recession in 2011/12

Finance minister Fernando Teixeira dos Santos said the raft of austerity measures required as part of the European Union and IMF rescue package will see the country's economy contract by 2% in 2011 and 2012, reports the BBC. Mr dos Santos said the economic restructuring, which will see a series of tax rises and spending cuts, will be tough but also said the programme was designed to return the country to growth. As part of the recue deal, the Iberian nation will have to restructure the banking sector as well as make changes to labour market laws and social benefits. Head of the EC ...