Portugal court blocks public sector wage cuts
Foreign lenders granted Portugal a €78 billion ($97 billion) financial rescue last year to spare the country from looming bankruptcy.
In return for the money, Portugal has to drive down its deficit to 3 percent of gross domestic product next year. It was 9.8 percent in 2010.
As part of that effort, the government has scrapped the Christmas and vacation bonuses of public sector workers and pensioners.
The court declared that move unconstitutional late Thursday, saying it contravened guarantees of equality.
The center-right government says it will now consider extending the deeply unpopular measure to the private sector.