PORTUGAL PLANS ECONOMIC MODERNISATION PROGRAM
Portugal's minority centre-right
government, which faces a crucial censure vote in parliament on
Friday, unveiled an eight-year economic plan aimed at reducing
foreign debt and boosting jobs and investment.
    Prime Minister Anibal Cavaco Silva told reporters the plan
was a blueprint for modernisation focusing on cutting
Portugal's 9.6 pct unemployment, or 400,000 people.
    The program was approved at a cabinet meeting of the
16-month-old Social Democratic Party (PSD) government.
    The censure motion has been proposed by a centre-left party
which says the government has failed to tackle economic ills.
    Left-wing opposition parties, who together hold a majority
in parliament, have indicated they intend to vote against the
minority government, which would automatically fall if
defeated.
    A first phase of the government plan foresees annual growth
in investment of between eight and 10 pct over the next four
years. Government figures show investment grew 10 pct last year
compared with a fall of three pct in 1985.
    The plan foresees this leading to creation of 32,000 new
jobs a year.
    The program also foresees government spending cuts,
particularly in the public sector, reducing the state budget
deficit to around five pct of Gross Domestic Product (GDP) in
1990 from nearly 11 pct in 1986.
    Portugal's foreign debt, which totals more than 16 billion
dlrs, was forecast to be reduced to the equivalent of 24 pct of
GDP in 1990 from around 55 pct at end-1986.
    Detailed forecasts were not released for beyond 1990.
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