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
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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
Tax tips for expats in Portugal
One of the biggest shockers that you will ever encounter as an expat living in Portugal is the tax system, so make sure you give it your full care and attention. If you live in Portugal and get your pension from England you are liable for tax in both countries. Also, if you do not declare it to the tax man in Portugal they actually have the right to kick you out of the country. So make sure that you are legit with your tax from the moment go! The tax system is also very different to England, so expect to have to learn a new tax system once you become an expat in Portugal. The rate of personal income tax in Portugal is below the national average of its fellow EU countries but it … [Read more...] about Tax tips for expats in Portugal
Saramago: Iberia’s Godless conscience
“With a rapid movement, what was in sight has disappeared behind the man’s clenched fists, as if he were still trying to retain inside his mind the final image captured, a round red light at the traffic lights. I am blind, I am blind, he repeated in despair as they helped him to get out of the car, and the tears welling up made those eyes which he claimed were dead, shine even more.” (From Blindness). Given that his life was so often filled with polemic, perhaps it was fitting that José Saramago’s death should be surrounded by controversy. The late Portuguese novelist would have smiled from the afterlife –if he had believed in it– at the idea of the Vatican and his country’s president … [Read more...] about Saramago: Iberia’s Godless conscience
What now for the “PIGS”?
Spanish savings bank La Caixa recently brought to market a €1-billion issue of three-year cédulas territoriales at 70 basis points over similar sovereign debt. As for the investors – 49 percent of these securities backed by loans to Spanish public administrations were picked up by German or British parties and 36 percent by locals. Given the horrific recent treatment of Greek debt, this benign event probably invites a closer look at the tenets behind the classification of a nation as one of the “PIGS” - as if the mere fact that Spanish sovereign 10-years are yielding approximately the same as when the crisis broke last December, whilst the Italian equivalent pays investors 10 basis points … [Read more...] about What now for the “PIGS”?
History repeats in Portugal
Walk the streets of any Portuguese city and sooner or later you will come across a scene that seems unchanged for decades: shoe-shiners on Lisbon’s Avenida da Libertade, elderly ladies hanging laundry from tumbledown balconies in old Porto or fish sun-drying on the beach in Nazaré. One of Europe’s most unassuming and introverted countries, Portugal is a place where the past is gazed upon with a sense of melancholy – until, of course, the past comes back with a bite. Since late January, Portugal has taken a battering on international markets, as its bond prices have plunged and ratings agencies have threatened to cut the country’s credit grade amid fears over rising budget deficits and … [Read more...] about History repeats in Portugal
How long can ETA ride on?
Few pieces of news can have more effectively conveyed the notion that ETA is on its knees than the arrest in mid-February of an alleged member of the violent separatist group while he was cycling through Guipúzcoa with a handgun and false papers in his backpack. Interior Minister Alfredo Pérez Rubalcaba insisted that Ibai Beobide was on no innocent jaunt. “He wasn’t practicing sport, because nobody does sport with a gun and a pen-drive,” he said, adding that the detained man had “the worst intentions.” With Spanish and French security forces making a seemingly never-ending string of arrests of ETA militants and leaders over recent years, often in stolen vehicles, this seemed to be an … [Read more...] about How long can ETA ride on?