First win of the Army Union in Portugal, the Portuguese government, after a direct threat with movement, announced that it is withdrawing the proposal to increase insurance premiums which had caused a storm of protest across the country and given rise to the famous statement of the Army Union.
The government had announced that it intends to increase its insurance contributions to 18% with a corresponding reduction in income of workers and hence the military to meet the demands of creditors, which led to the Army Union statement.
After his meeting with the country’s President Cavaco Silva, Prime Minister Pedro Passos Coelho, who was asked by the Army Union not to simply surrender, but … immigrate, and officially announced the withdrawal of the measure.
Portugal, which in the previous period was for several German politicians ‘standard’ of implementation of the austerity measures was forced to back down after the huge reactions to the agreement with its partners to increase from 11% to 18% insurance contributions of workers and to reduce their employers respective from 23.75% to 18%.
Read the full Army Union statement here