Lex: Portugal and Spain

José Sócrates, Portugal’s prime minister, will announce tough new austerity measures on Thursday, including a “crisis tax” on companies and wages, to accelerate cuts in the country’s gaping budget deficit. The new austerity package, which follows similar moves by Spain, Greece and Ireland, is being introduced under pressure from Portugal’s European Union partners for sharp budget cuts in support of a €750bn emergency plan to defend the euro. Richard Stovin-Bradford analyses the latest austerity cuts in both Portugal and Spain.