Portugal PM denies rift in government over austerity

MADRID Mon May 13, 2013 2:18pm BST

Portugal's Prime Minister Pedro Passos Coelho speaks during a debate session at the parliament in Lisbon May 10, 2013. REUTERS/Hugo Correia

Portugal's Prime Minister Pedro Passos Coelho speaks during a debate session at the parliament in Lisbon May 10, 2013.

Credit: Reuters/Hugo Correia

MADRID (Reuters) - There are no divisions within Portugal's ruling coalition and the government over austerity measures needed to meet the terms of the country's bailout, Prime Minister Pedro Passos Coelho said on Monday, denying some media reports of a rift.

"There is no divergence within the government," he told reporters in Madrid. Passos Coelho's Social Democrats rule in a coalition with the centre-right CDS-PP party, which has opposed a levy on pensions as part of a deficit-reduction plan.

The government said on Sunday its EU and IMF lenders had concluded work on the latest bailout review, indicating there were no outstanding obstacles for Lisbon to receive the next 2 billion euro tranche of the rescue package.

(Reporting By Andrei Khalip)

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