Portugal gov't cranks up debt reduction effort

LISBON, Portugal (AP) — Portugal's government plans "unprecedented" spending cuts next year to meet debt-reduction targets agreed in return for a €78 billion ($112.7 billion) bailout, the country's finance minister said Wednesday.

Portugal has to abide by debt targets to qualify for bailout loans from its European partners and the International Monetary Fund, which are conducting quarterly reviews of the country's progress before disbursing the money in portions.

The rescue package spared debt-heavy Portugal from bankruptcy, and aimed to ease Europe's sovereign debt crisis, but Lisbon has struggled to keep its fiscal recovery plan on track.

It previously announced it is levying a one-off tax, taking 50 percent