This in an economy that is expected to have modest GDP growth around 2 or 3%, and where the unemployment rate is 9.1%.
In Portugal , the unemployment rate is 11.1%. GDP will likely fall, with a growth rate between -0.5% and -2% in 2011-12.
But cutting payroll taxes (via taxa social unica) in Portugal by more than 3%, as part of a fiscal devaluation, was pronounced in the last couple of months as far too much. Not feasible, dangerous, irresponsible, unnecessary were some of the adjectives to describe it.
In the land of small government, it seems that when it wants to, the government can do way more than in the land of "Estado omnipresente". Not so much of a contradiction, when you think about it.