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The Prime Minister of Portugal, Pedro Passos Coelho, has goven an interview on Portuguese TV, where he has confirmed the suspension of the AVE high speed train route to link the capital cities of Lisbon and Madrid.
The decision to link the cities was officially confirmed at the Iberia Summit, some eight years ago, and had received on-going support at subsequent summits.
The PM said that the Portuguese people could not understand why the project should continue at a time when the country was facing so much financial difficulties.
The confirmation follows months of speculation, where Portugal has also previously announced the cancelation of a number of other projects included new motorways and a new airport to serve the capital, Lisbon.
Last month Portuguese Federation of Construction and Public Works Industry (FEPICOPS) reported how in the last year unemployment in the sector had grown by some 14% - 71'000 people.
