Portugal rolls back austerity, how far can it go?

LISBON (Reuters) - Portugal's left-leaning government has set out to reverse its predecessor's austerity policies, aiming to grow its way out of trouble by boosting demand and set an example for other post-bailout euro zone countries.

But European authorities have responded by raising pressure for budget deficit cuts, which tepid economic growth alone is unlikely to deliver despite Lisbon's assurances. Any increase in purchasing power may be too slight to fuel the desired economic take-off, setting up a clash with Brussels soon.