Of the many bits of bad economic news Spain has received this past year, including finding deficits were higher than expected and growth rates much lower, perhaps no other figure has proven as weighty and daunting as the country’s unemployment rate. Reports released at the end of January saw that number rise to 22.9 percent, adding another dismal headline to the Rajoy government’s first full month in office: nearly 5.3 million people out of work with declines in available positions across the board, from services to the country’s still collapsing construction sector. Capturing the dour outlook of the country’s current situation, The Atlantic’s Derek Thompson summarized the statistics … [Read more...] about Getting to the bottom of Spain’s daunting unemployment rate
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Pedro Passos Coelho
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
O Lusitania
Tabucchi loves Lisbon, the film director Wenders loves Lisbon, and I much like Lisbon: the sweet urban decadence of it, the formidable Atlantic ocean of it making it Europe’s last vestige on the southern flank, but also an easy, open way to the new world, as far as the immensely flowing Amazon. A city in a nation well positioned for potential greatness, but Portugal still needing to be represented in the international literary canon with its only available candidate at one point, the poet Fernando Pessoa it seems. A chap through his compositions and spiritual meanderings contributing to its name, ironically named pessoa, meaning person in Portuguese, yet a man cleverly made up of many … [Read more...] about O Lusitania
Mourinho’s mad magic loses its lustre
José Mourinho has always insisted that his antics, provocations and pre-match hyperbole are an unselfish gambit, aimed at drawing attention away from his players. Let’s take him at his word, and examine not the state of Real Madrid, but the state of their coach. Mourinho’s appearance has always seemed to speak volumes about his state of mind. When he started at Chelsea, he dressed like George Clooney, kept physically trim and his haircuts were frequently more fashionable than those of his players. When his relationship with the London club’s owner, Roman Abramovich, started to deteriorate and the team’s performances declined, not only did Mourinho start to look tetchy and disgruntled, his … [Read more...] about Mourinho’s mad magic loses its lustre
Friendship with Chávez “a necessary evil” for Portugal’s Sócrates
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
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
Porto’s trophy-hungry boss insists he’s no Mourinho clone
The comparisons have been as predictable as they have been widespread. In Britain, the Guardian called him "Mourinho’s apprentice", while the Daily Mail anointed him as "Mourinho Mark II". The Spanish press followed a similar line - El Correo named him Mourinho’s pupil and even El País joined in, headlining their profile "Mourinho’s spy". The potential mini-Mou in question is FC Porto boss André Villas-Boas, whose achievements in his first full season in football management have been spectacular. Last month Villas-Boas's side secured the Portuguese title with five games in hand and this week he leads his team into the Europa League and Portuguese Cup finals. Records have tumbled along … [Read more...] about Porto’s trophy-hungry boss insists he’s no Mourinho clone
Spain: Too big to fail?
The European Union’s three victims-so-far of the global financial meltdown have, not incorrectly, been described as the economic bloc’s periphery. Their economies are relatively small and, though at times worries about their debts have undermined the euro currency, their problems – even taken in combination – are hardly likely to bring the bloc to its knees. Individually, they were sick from a debilitating cocktail of similar problems: bed-ridden with debt and weak from a bad diet of profligate government spending and loan-happy banks. Nothing, it seemed, that a dose of bailout money from the EU and IMF could not cure with a trip to the emergency ward. Spain is showing similar symptoms. … [Read more...] about Spain: Too big to fail?
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