World important news by Catherin

UPDATE 1-Portugal adds company tax to meet bailout goals

* Opposition says measures violent and unfairLISBON, Oct 14 (Reuters) - The Portuguese government on Friday further expanded its austerity drive with a tax on companies with high profits to meet fiscal goals under an EU/IMF bailout as it tries to restore investor confidence in the heavily indebted country.A day after unveiling a range of other painful measures that effectively cut public sector wages, Prime Minister Pedro Passos Coelho said companies with annual profits exceeding 10 million euros will have to pay an additional tax of at least 5 percent in 2012.Portugal had already slapped a 2.5 percent tax on firms with yearly profit of over 2 million euros before the 78-billion-euro bailout was agreed in May.Passos Coelho told parliament Portugal had to prove to its European partners and investors that it will meet its goals by having a credible budget, no matter how tough. The draft 2012 budget will be presented to parliament next week.”The path we have ahead is narrow and severe. I’m not doing this with a light heart. These steps have to be taken so that all Portuguese can get out of this nightmare,” he said.The new measures were needed to offset a budget shortfall this year, part of which would still weigh on 2012 accounts, and a worsening economic outlook for next year. Portugal has to cut the budget deficit next year to 4.5 percent of GDP from this year’s projected 5.9 percent.”We are doing a real rescue of the country’s autonomy. The alternatives would lead the country to a worse situation than what will result from these measures,” Passos Coelho added.European Commission spokesman Amadeu Altafaj said in Brussels that although “recent events put even more pressure in terms of meeting these fiscal targets”, the commission is sure the Portuguese authorities are determined to do whatever is necessary to meet the goals.Passos Coelho said that with the 2012 budget cuts, the government has eliminated all excessive and inefficient spending in healthcare, education and social expenditure.”After completing the budget, I consider that there is no margin to cut more in healthcare, education or to cut more in state social spending in terms of what is inefficient, what is excessive,” he said.The centre-right coalition government has a solid majority in parliament and should have no problem approving the austerity budget, which the leftist opposition attacked. The second-largest party in parliament, the Socialists, called the new measures “violent and unfair”, saying they will only deepen recession.