Former Portuguese Prime Minister José Sócrates found himself in a diplomatic quandary when Washington started pressuring him to take a tougher line on Hugo Chávez when the Venezuelan leader visited Lisbon. A series of US embassy cables from 2006 released recently by Wikileaks show how the US government had pushed the Sócrates government on numerous occasions to be more vocal over Chávez’s human rights record. But US diplomats in Lisbon expressed their frustration over Portugal’s hesitancy to take a lead in diplomatic initiatives against the Chávez government because the Sócrates government feared repercussions against the large Portuguese community in Venezuela. Sócrates saw Chávez’s … [Read more...] about Friendship with Chávez “a necessary evil” for Portugal’s Sócrates
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Portugal gets bailout as Sócrates eyes reelection
Since his government collapsed, Sócrates has worked hard as acting prime minister to secure a now-essential bailout package with the European Union and International Monetary Fund to patch up Portugal’s debts and correct budget deficits that have crippled the country’s ability to borrow on international debt markets. This week, he achieved his objective: agreeing to a bailout with austerity measures very similar to those that opposition parties shot down in the parliament in March. “The government has today reached an agreement with the international institutions regarding the financial aid to our country,” Sócrates said in a televised address on Tuesday. “Naturally, there are no … [Read more...] about Portugal gets bailout as Sócrates eyes reelection
A bitter celebration as Portugal remembers the Carnation Revolution
Thirty-seven years ago today, a swell of disenchantment with the Portuguese government of Marcello Caetano, a continuation of the regime of long-time dictator António Salazar, prompted a group of army officers to lead a coup. Word spread, resistance was virtually non-existent and in the space of a few non-violent hours, the regime was on the verge of being ousted. The putsch culminated in a strange scenario in which Caetano locked himself inside the National Republican Guard building in Lisbon’s Carmo Square as a massive crowd – including armed soldiers and curious men, women and children from the neighbourhood – gathered to watch. After several hours, Caetano gave in and signed a … [Read more...] about A bitter celebration as Portugal remembers the Carnation Revolution
Spain and Portugal’s right shun austerity and Brussels – for now
It’s easy to see parallels between the governments of Spain and Portugal of recent years. José Luis Rodríguez Zapatero and José Sócrates were both fresh-faced Socialists when they took power in 2004 and 2005 respectively, promising social reforms as well as economic stability. Both were voted in for second terms before running aground on the challenges that arose following the world economic crisis. Like their Socialist counterpart in Greece, Georgios Papandreou, both men have been forced by circumstances to repress their political instincts and introduce heavy spending cuts and painful reforms. In Portugal, where the economic outlook is worse, the opposition’s withdrawal of support for a … [Read more...] about Spain and Portugal’s right shun austerity and Brussels – for now
Bailout beckons as Portugal’s Sócrates resigns
Try, try again… then quit. Portuguese Prime Minister José Sócrates stepped down late on Wednesday saying “today, I am convinced the country is lost,” after a last-ditch effort to push through new austerity measures and avoid a Greek-style bailout failed to win support in the Lisbon parliament. The resignation of Sócrates and his minority centre-left government effectively pushes Portugal into the arms of the European Union and the IMF, with many analysts now saying that the debt-laden Iberian state can do little to avoid following in the footsteps of Greece and Ireland, both of which were bailed out last year when their bond yields reached unsustainable levels. At around 7.8 percent, … [Read more...] about Bailout beckons as Portugal’s Sócrates resigns
Portugal’s debt: a tale of pride and prejudice
Borrowing costs on Portugal’s debt have hit a level that proved unsustainable for both Greece and Ireland, but Lisbon is refusing to countenance talk of an EU bailout. Can this small, recession-prone nation hold out much longer? Long lumped along with Ireland, Greece and Spain as one of the so-called PIGS, Portugal has so far managed to face down fears about its ability to service its debt better than many policymakers, economists and investors could have expected. Even as the yield on 10-year Portuguese bonds soared to 7.63 percent in mid-February –the highest level since the country became a founder member of the single currency at the end of the 1990s– and the European Central … [Read more...] about Portugal’s debt: a tale of pride and prejudice