Tag Archives: 'Portuguese bailout'
The Spanish newspaper El País reported Lisbon was negocatiating further financial aid with the European Commission, but the news was denied by the EU.
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.
Tuesday, 2 July: “Maintain the same firm and constant path” is the advice from European Commissioner for Economic Affairs, Olli Rehn to new Portuguese finance minister, Maria Luís Albuquerque who takes over from Vítor Gaspar after his resignation on Monday.
In the aftermath of the general strike, unions speak of a strong participation, but the government claims the country did not stop. The attempt to cut off one of the main access roads to the 25 April bridge in Lisbon was the incident that marked the day. Passengers at Lisbon Airport are still feeling the effects of the strike.
During Saturday’s extraordinary cabinet meeting, the government discussed the reform of the state and said it is time to give the Portuguese hope, but a hope “based on realism.”
After a meeting with British Labour leader Ed Miliband, the secretary general of the Portuguese Socialist Party said it was not enough for the IMF to admit its mistakes, it also needed “to act”.
Portugal’s largest opposition party said the government should renegotiate the whole adjustment programme with international officials.
Despite news agency Reuters reporting that the eurozone finance ministers will approve an extension of the deadlines for Portugal to pay back its debt, the government is still working behind the scenes. At the same time, a cabinet reshuffle is being prepared in Lisbon.
The decision to tax bank deposits in Cyprus in return for a bailout has sent euro and bond markets falling, sparking fears among Portuguese politicians. Portuguese President Cavaco Silva said the move was “very dangerous.”
As Portugal nears judgement on its bailout progress, the troika of international lenders are ready to announce they will give the country one more year to meet its deficit target. But they will maintain their rigid stance on expenditure cuts in a frantic attempt to close the budget gap.