In Portugal, the parliament has approved a regional finance bill that seems likely to increase the country’s budget deficit.

The bill promises extra financing for the autonomous regions of Madeira and the Azores. The country’s minority socialist government opposed it because it believes it will cost too much money. However, the majority in parliament belongs to the right wing opposition, who approved the bill and passed it.

The Portuguese Minister of Finance, Fernando Teixeira dos Santos, said the bill sends the wrong message to the financial markets and that he will still try to block it.

Portugal, Spain and above all Greece are currently under great pressure from the European Union to bring their finances under control. Due to their large budget deficits, the value of the euro has shrunk and global stock exchanges have recorded heavy falls.

Photo of Parliament House in Lisbon by herr_schaft (flickr)