The austerity measures, which included a special tax of as much as 10% on pensions above €1,500 ($2,110) a month, were drafted with input from the European Central Bank and the European Commission as an “additional guarantee” that Lisbon would meet its fiscal targets. But Pedro Passos Coelho, leader of the centre-right Social Democrats (PSD), the main opposition party, refused to support them because they were aimed at “the most vulnerable”.
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