Ruling No. 187/13
Portugal Constitutional Court
Ruling No. 187/13 (2013)

- Written by Kelly Simon, JD
Facts
In Portugal, employees in the public and private sectors were paid a thirteenth month of salary, called the holiday month. During a global economic downturn, many European countries faced fiscal crises. In response, the European Union (EU) and nongovernmental organizations, such as the International Monetary Fund (IMF), provided loans and other financial support to help stabilize the economies of afflicted countries. The financial support was provided contingent on the imposition of austerity measures to reduce government spending. After accepting funds to stabilize the economy and committing to lowering its public deficit, Portugal adopted new financial measures to limit government spending and comply with its commitments to its lenders. In 2013, the Portuguese national assembly passed the State Budget Law for 2013 (the budget law). The budget law included provisions to suspend the payment of the holiday-month salary to public-sector employees and to partially suspend the holiday-month payment for retirees with pensions. Several petitioners including the president of Portugal and members of the legislature (plaintiffs) requested that the Portugal Constitutional Court determine the constitutionality of the budget law.
Rule of Law
Issue
Holding and Reasoning ()
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