Three-quarters of the Portuguese believe that the worst is yet to come, according to a study released on Tuesday by the European Commission.
The Portuguese Government has the ability to “go in the right direction” says the US Ambassador to Lisbon, Ambassador Allan Katz, recognising that many economic problems can not just be solved in Portugal, since they are part and parcel of a European problem.
After three weeks of political crisis, the President has done a U-turn and accepted Coalition changes after Cavaco Silva had not succeeded in getting an agreement from the three parties. The PSD-CDS coalition continues.
Negotiations fail: After nine meetings between the coalition Government PSD and CDS parties and the opposition PS party, the President’s call for consensus has fallen on deaf ears. The PS has snubbed the conditions
The General-Secretary of the centre-left PS party is maintaining his silence in order not to wreck negotiations underway with the PSD and CDS.
The main opposition party, the Socialists, voted for the motion despite continuing to take part in talks with the coalition parties. The Prime Minister Pedro Passos Coelho said the government maintains its “strength and cohesion”
The President of the Republic thinks that the meetings that the parties are having to reach an agreement are of “historic significance”.
The PSD/CDS-PP coalition government is facing its fifth no-confidence vote, this time presented by the ecology party the Greens but, like the previous ones, is liklely to be turned down by the Majority in Parliament.
The country auctioned he maximum it was aiming for, paying higher yields on the five- and 12-month T-bills than in previous operations with similar maturities.
The three main Portuguese parties, the PSD, PS and CDS-PP, are still negotiating but there are disagreements over the huge €4.7bn cuts that have to be made in State spending, with voices of dissent even from amongst government officials and the Government’s majority coalition party PSD, putting next year’s budget at stake.