Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
PORTUGAL’S THREE MAIN parties failed yesterday to reach a deal to end a political crisis shaking the country and threatening to derail the bailed-out government’s bid to overhaul its finances.
More than two weeks into a crisis sparked by the resignation of two key ministers amid ongoing feuding over austerity cuts, the leader of Portugal’s Socialist opposition blamed the two parties in the embattled centre-right coalition government for sinking talks aimed at sealing a pact to pursue radical reforms and avoid a second rescue.
Antonio Jose Seguro, the party’s secretary general, said the centre-right coalition had “made it impossible” for his Socialists to join them in a deal to ensure the country meets its commitments under its bailout, as urged by conservative President Anibal Cavaco Silva.
“Over the course of this week, we’ve fought for the government to put an end to its austerity policy,” said Seguro.
“What’s going to happen now? That’s for the president to decide,” he added.
He said Prime Minister Pedro Passos Coelho’s centre-right PSD party and its coalition partner, the conservative CDS-PP, had refused the Socialists’ proposals to ease off harsh austerity cuts in favour of spending aimed at boosting economic growth and reducing unemployment.
Unemployment
Portugal is struggling with a three-year recession and record unemployment of more than 18 percent as it implements the harsh cuts promised in return for its 78-billion-euro rescue from the European Union and International Monetary Fund.
Seguro said two irreconcilable positions had emerged during the negotiations, which started Sunday, and that he had insisted on “turning a corner in Portugal because the Portuguese people can’t take any more sacrifices.”
He pledged to keep fighting to renegotiate the austerity cuts agreed under the terms of the May 2011 bailout and for “a strong Portuguese position” on finding a solution to the eurozone debt crisis.
Cuts and tax increases
The current crisis erupted when two key ministers in the ruling coalition tendered their resignations amid disagreements over spending cuts and tax increases.
The political emergency destabilised the ruling coalition and stoked fears that Portugal would veer into a new crisis, shaking world markets fearful of a new wave of instability in the eurozone’s debt-laden periphery.
Portugal’s doggedness in implementing reforms has won it praise from its creditors, and it has been hoping to exit the rescue programme in 2014.
But the political uncertainty has pushed up the country’s borrowing rate, raising the spectre of another bailout.
Portugal’s austerity measures are widely blamed for exacerbating the country’s recession, and the resulting hardship has sparked growing street protests.
The country forecasts a 2.3-percent economic contraction this year.
- © AFP 2013.
To embed this post, copy the code below on your site
The EU will inflict any amount of austerity to save their precious euro
At this stage it’s turned into a matter of pride for the EU leaders. 3 years in there is no way they can admit they got it wrong.
Of course.The euro was the stepping stone to a federal europe.Lets all raise a glass to the EUSSR comrade.
Mr Willy
Do you seriously think that your opinions or views on something as complex as the protection if the Euro are given any thought whatever when you use a name as vulgar and stupid as that?
And more importantly I wonder what your living standards would be like if the Euro collapsed?
And thus is the spirit of Viriatus awoken !
No the Irish are better at lying and cheating. We could teach a lot of countries how to manage figures to suit any occasion. Bertie is currently being paid by Nigeria for private lessons and personal grinds.
They love a good schemer. He’ll be right at home. I always wonder what his daughter’s think of him. Do they know he’s a treacherous bastard and still love him because he’s their father (as I would expect) or are they completely blind to what he is because they’ve always lived in the lap of luxury?
”No the Irish are better at lying and cheating”
What is more it is an admired trait – by the Irish – and has helped land us in this mess . To think that Bertie is making money at teaching what may well be !!!!!!!!!!!!!! corruption is sickening – but thats the way Blair is at same game .
Chill Jim ; Bertie was only the boy ; we needed him to draw out the real European plan ; now we know, it will be fine.
We might see Edna getting a crack at emergency powers and we might see a little back-up called in from Germany , but it will be over in a few weeks and it will all settle down again to separate nations!
Have you noticed the more austerity the more socialist the outlook the E.U is strangling itself with greed ad meanness and everyone is suffering ; Germany is now outside the top 5 economies and seeing as the whole purpose is wealth generation it has failed !
The real question is how do we get it across to the german “man in the street” that he too is being take for a ride !
Sick of this crap now
Between rte prime time and the indo ramming it down our troughs
thats us next.
But we’re great craic so it’ll be graaaannd
I stepped out and you stepped in again learning to dance at the eu ball
Throats
James
I think you have a stammer.
Take your medicine Portugal just like us Irish have done. Somebody will have to become the new model pupil when we exit the program in a fee months time. We all love the praise from Angela & her comrades and ye Portuguese could grow to love it too!
have your say