Tag Archives: 'austerity measures'
A group of leading business figures have drafted a manifesto appealing to the three largest parties in Portugal’s parliament to reach an understanding, acknowledging the “suffering” caused by austerity measures adopted by the right-of-centre coalition government.
The summer economic bulletin estimated that gross domestic product (GDP) would shrink by 2% this year, compared to an original growth forecast of -2.3%, and 0.3% next year, while the earlier forecast for next year had been 1.1%.
The conversations between the prime minister and leader of the PSD and the leader of the junior coalition party CDS-PP are to continue in an atmosphere that a government source described as “very positive”.
Portugal’s government will fall, even if it limps on for a few days or weeks. The country is rushing towards the edge of the cliff and an abyss. The main members of the Government have chucked all the hard-fought successes of the last two years into the rubbish bin at the cost of the people’s suffering.
The government decided that the ‘Christmas’ payments made so far to public servants are to be considered as ‘Holiday’ bonus, meaning that it will not have to pay an extra month’s salary in June. It also announced a reduction on the limits of all budget programmes such as expenses with personnel, goods and services.
Albert Jaeger, who heads the IMF office in Lisbon, is still upbeat regarding the country’s bailout programme but Portugal still needs to rebuild full credibility, he tells PDV in an exclusive interview.
Thousands took to the streets once again in Lisbon and other district capitals across Portugal on Saturday against the government’s increasingly harsh austerity policies.
The 17 eurozone member states formally approved the release of €800m under the framework of the Portugal’s bailout programme.Tuesday sees a meeting of the European Union Finance Ministers that is expected to correspondingly authorise a further €2bn in funding.
The Portuguese president told Spanish leading financial newspaper ‘Expansión’ the EU and the ECB tended “to react too late”, adding that German Chancellor Angela Merkel should be “more consistent” in defending the single currency.
In a piece reflecting the impact of austerity measures on recent elections, Financial Times Brussels correspondent Peter Spiegal draws special attention to Portugal, where he says the most unexpected shock has been for many European leaders.