Portugal's parliament is expected to approve the country's biggest tax increases in its modern democratic history today in a budget, the government says, it needs to keep a €78 billion EU/IMF bailout afloat.

Commentators say the measures are almost certain to be challenged in court.

The 2013 budget's proposed tax hikes on income, property and financial transactions are the Portugese government's third attempt to tackle the deficit since July.

The country's constitutional court threw out a plan to cut civil servants' benefits, and a plan to raise social security contributions was abandoned after street protests.