By Shrikesh Laxmidas
LISBON (Reuters) - Tens of thousands marched in central Lisbon on Saturday against the government's austerity measures, in a protest the country's top union said was one of the largest in Portugal in recent years.
The rally was the first serious sign of popular discontent after the government announced tax hikes and spending cuts on May 13, adding to measures such as a freeze on civil servants' wages, and unions warn strikes could be the next step.
The 725,000-strong Confederation of Portuguese Workers (CGTP) did not say how many people were at the peaceful protest, but had earlier said it expected as many as 200,000 to march against the austerity measures.
"It's still early to provide a number, but we confirm this is one of the biggest, if not the biggest, protest in recent years," Armenio Carlos, member of CGTP's leadership committee, told Reuters as protesters made their way down Liberdade Avenue.
"We received hundreds of buses from all over the country filled with people who came to show their discontent and from all sectors of society -- public workers, teachers, local government workers, students and even businessmen," he added.
Police would not provide estimates of protester numbers.
The government's plan aims to soothe investor concerns over Portugal's creditworthiness and fight contagion from debt-stricken Greece. Portugal aims to cut its budget deficit to 7.3 percent of gross domestic product this year from 2009's high of 9.4 percent, and then gradually to 2.8 percent by 2013.
"It is with great disappointment that I see these additional measures as they attack the economic rights of those who have so little already," said school teacher Joel Canuto from Sintra.
Public protest over cutbacks has been muted in Portugal so far compared with elsewhere in Europe, especially the violent unrest seen in Greece, but the CGTP said it plans to push for more social resistance and has left open the option of calling a general strike in the coming weeks.
Some banners displayed at the rally urged further action.
"Let's follow Greece: General Strike!" one read. Several others said, "The austerity plan stinks!"
Analysts say the relatively low level of public protest in Portugal and the strategy of backing the austerity plan by the main opposition party, the centre-right PSD, for now means there is little chance of a government collapse before the next presidential mandate starts in March 2011.
"The Portuguese are a peaceful people, but there is a limit to how much they can take. Right now we are at that limit. People are struggling to pay rents, to survive," said Antonio Mendes, local government councillor from Vendas Novas.
(Editing by Louise Ireland)
