LISBON, Aug 31: The third rejection of government austerity plans by Portugal’s constitutional court in 13 months has raised doubts about whether any serious structural spending cuts sought by EU and IMF lenders can be done without constitutional changes.

While short of sparking an immediate crisis, the latest failure to push through deficit-cutting measures is at minimum a setback. It is one that could complicate the upcoming review of Lisbon’s bailout by its European Union and International Monetary Fund lenders next month.

But the continued objection of the constitutional judges suggests more radical action may be needed.

“We can’t live in this constant uncertainty. Without constitutional changes the measures now sought by the troika of lenders are hardly possible to enact,” said Adelino Maltez, a political scientist at Lisbon’s Technical University.

Amending the constitution would require the consent of the main opposition Socialists as the government’s parliamentary majority is not big enough. Analysts says that despite the political divisions, such consent is not impossible to get - but could take time.

Portugal’s current bailout programme ends in mid-2014, but many analysts expect the indebted euro zone country to need some sort of a further support programme.

Lisbon does not want a second bailout. But the court’s ruling on Thursday against a bill that would have effectively allowed the state to fire public sector workers after a requalification period does not bode well.—Reuters