Pedro Passos Coelho said social security, health, education and public enterprises would have to be cut.

BBC: Union protest in Lisbon, 22 March

Prime Minister Pedro Passos Coelho did not react to the decision immediately but called an extraordinary cabinet meeting for Saturday.

BBC: Portugal constitutional court rejects budget articles

But the scale of the tax rises and uncertainties over whether they will produce the desired results have exposed Pedro Passos Coelho, the prime minister, to stinging criticism from both left-wing political opponents and senior figures close to the governing coalition parties.

CNN: Portugal braced for 'fiscal earthquake'