by ANDRE DAMON
The European debt crisis intensified Friday, as speculators continued their latest attacks on Spain and Portugal. Meanwhile tensions rose between Germany and European officials over the amount of money to be set aside for further bailouts.
Borrowing costs for the Spanish and Irish governments hit their highest levels Thursday since the adoption of the single currency. In response to the ongoing attacks, Portuguese lawmakers, spearheaded by Socialist Party Prime Minister José Sócrates, passed an austerity package Friday. The budget includes cuts to pensions and welfare benefits and tax increases mainly affecting the working class.
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