How do you impose the toughest austerity measures a country has experienced in more than three decades and increase your popularity ratings at the same time? Ask Pedro Passos Coelho, Portugal's spendthrift but widely admired prime minister. Elected in June in a historic victory for his centre-right Social Democratic Party, the seemingly impermeable Passos Coelho has embarked on a long list of economic, fiscal and labour market reforms going beyond anything demanded by the EU and the IMF as part of debt-laden Portugal's bail-out package. Though his strategy to bring Portugal's debt and public account deficit into line has stirred controversy - and a general strike - the reason for Coelho's … [Read more...] about Pedro Passos Coelho
portugal debt
Thrifty newcomer may be just the ticket in profligate Portugal
Pedro Passos Coelho, Portugal’s prime minister-elect, does not like wasting money. Both in his professional career and personal life, he has been described as thrifty, frugal, even tight-fisted. He currently lives in a standard apartment block in the none-too-fashionable Lisbon district of Amadora, but if he moves into the prime minister’s residence near the São Bento Palace his stinginess may come in handy in solving Portugal’s debt and deficit crisis. That, at least, appears to be what many Portuguese were thinking when they handed victory to Passos Coelho’s centre-right Social Democrats (PSD) in last Sunday’s general election, coupled with a desire to get rid of the Socialist … [Read more...] about Thrifty newcomer may be just the ticket in profligate Portugal
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
Portugal’s history echoes down the ages
Portugal has been a regular feature in international news headlines lately. Sadly, though, it is usually mentioned for the wrong reasons, such as worries about its ability to manage its chaotic finances and finance its debt. This glut of attention contrasts with the near invisibility Portugal has maintained for much of the last few decades on the international stage, with few figures other than its footballers and the occasional writer making an impact beyond its own borders. In The Portuguese: A Modern History, Barry Hatton explores both the reasons for the country’s see-sawing international profile and the roots of its more recent economic woes. A Lisbon-based journalist who has … [Read more...] about Portugal’s history echoes down the ages
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